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