QuestionJuly 20, 2025

All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT A. The employer can receive a current tax deduction for any contributions made to the plan. B. The plan can discriminate as to who may participate. C. The plan is a legal method of accumulating money for retirement needs. D. The plan is not approved for favorable tax treatment by the IRS.

All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT A. The employer can receive a current tax deduction for any contributions made to the plan. B. The plan can discriminate as to who may participate. C. The plan is a legal method of accumulating money for retirement needs. D. The plan is not approved for favorable tax treatment by the IRS.
All of the following statements concerning an
employer sponsored nonqualified retirement plan
are true EXCEPT
A. The employer can receive a current tax
deduction for any contributions made to
the plan.
B. The plan can discriminate as to who may
participate.
C. The plan is a legal method of
accumulating money for retirement needs.
D. The plan is not approved for favorable
tax treatment by the IRS.

Solution
4.5(244 votes)

Answer

A. The employer can receive a current tax deduction for any contributions made to the plan. Explanation 1. Identify the incorrect statement Nonqualified retirement plans do not allow employers to receive a current tax deduction for contributions made to the plan. Contributions are typically deductible when benefits are paid out.

Explanation

1. Identify the incorrect statement<br /> Nonqualified retirement plans do not allow employers to receive a current tax deduction for contributions made to the plan. Contributions are typically deductible when benefits are paid out.
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