Question

When deciding whether or not to participate in a nonqualified deferred compensation plan, which of the factors below does NOT need to impact the employee's decision?

a) Investment Options
b) Tax Implications
c) Job Satisfaction
d) Employer Match

Answer 1

Job Satisfaction does not need to impact an employee's decision when considering participation in a nonqualified deferred compensation plan. Investment options, tax implications, and employer match are the key factors to be considered.

Step-by-step explanation:

When deciding whether to participate in a nonqualified deferred compensation plan, the factor that does not need to impact an employee's decision is c) Job Satisfaction. Other factors that are essential to consider include a) Investment Options, because it is important to understand the type of investments available within the plan. b) Tax Implications are also a key aspect as deferred compensation plans can be used to defer income taxes, and d) Employer Match can greatly contribute to the overall value of the compensation plan. However, Job Satisfaction is generally influenced by various factors such as work content, autonomy, financial rewards, and one's personality; it does not directly affect the decision to participate in a deferred compensation plan.