Which of the following situations might convince an employer to choose a nonqualified retirement plan over a qualified profit-sharing plan?

A) The employer, a closely held C Corporation, is in the 15% income tax bracket and the sole owner of the employer is in the 35% income tax bracket.

B) The employer only wants to meet the organization's objectives of attracting executives, retaining executives, and providing for a graceful transition in company leadership.

C) The employer is not concerned with providing retirement benefits to the rank and file employees.

D) The employer is not willing to pay high administrative costs.

E) All of the above.

Question

Business

Myah Sellers

6 November, 07:25

Which of the following situations might convince an employer to choose a nonqualified retirement plan over a qualified profit-sharing plan?

A) The employer, a closely held C Corporation, is in the 15% income tax bracket and the sole owner of the employer is in the 35% income tax bracket.

B) The employer only wants to meet the organization's objectives of attracting executives, retaining executives, and providing for a graceful transition in company leadership.

C) The employer is not concerned with providing retirement benefits to the rank and file employees.

D) The employer is not willing to pay high administrative costs.

E) All of the above.

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Answers (1)

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Evony · Answer 1

All the options might convince to an employer to choose a nonqualified retirement plan over a quialified plan.

en A). the owner of the corporation would use a nonqualified plan because the income tax rate of the business is lower than the owner's tax rate.

B) Is a true statement. as nonqualified plans are typycally only stablised to benefit the executive and there are no requirements to benefit thr rank and file

C)

would cause an employer to choose a nonqualified plan because a nonqualified plan requires less administrative costs than a profit sharing plan