Final answer:
Employee contributions to a qualified retirement plan such as 401(k)s and 403(b)s are nonforfeitable and tax deferred, ensuring immediate and full ownership by the employee. Option C
Step-by-step explanation:
Among the options provided, contributions made by an employee to a qualified retirement plan are generally required to be nonforfeitable. This means that once an employee has earned a benefit, the benefit cannot be taken away or forfeited.
In defined contribution plans like 401(k)s and 403(b)s, the contribution made by the employee is immediately vested, meaning the employee has full ownership of their contributions regardless of their tenure at the company. Employer contributions, however, might be subject to a vesting schedule, which would specify a certain period during which the employee earns full rights to the employer contributions.
These plans are tax deferred, meaning the employees do not pay taxes on the contributions until they withdraw the funds, typically after retirement. Option C