Which of the following statements regarding nonqualified deferred compensation plans is NOT correct?
A) Most deferred compensation plans are unfunded.
B) A deferred compensation plan is an unsecured promise made by an employer to pay an employee part of the employee's compensation in the future.
C) Under a nonqualified deferred compensation plan, an employee can rely on guaranteed future benefits.
D) The employer receives no tax deduction for the amount of the compensation deferred until the compensation is actually distributed."
Ans: C) Under a nonqualified deferred compensation plan, an employee can rely on guaranteed future benefits.
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