QUESTION 16 Participating in an employer-sponsored nonqualified deferred compensation plan is potentially risky because employers are not required to fund nonqualified plans. If the employer is not able to pay the employee when the payment is due, the employee usually becomes an unsecured creditor of the employer True False 3.1
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Step 1: Nonqualified deferred compensation plans are not subject to the same funding requirements as qualified plans, so employers are not required to set aside funds to meet their future obligations to employees. Show more…
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