Nonqualified deferred compensation (NQDC) plans allow employees to defer income until a future date.
D is correctbecause NQDC funds remain part of the company’s general assets, which creditors may claim if the company goes bankrupt.
Ais incorrect as NQDC plans are not subject to ERISA rules.
Bis incorrect because these plans do not require IRS review.
Cis incorrect as NQDC assets are not required to be held in escrow.
[Reference:IRS Code Section 409A, ]
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