Nonqualified retirement plan-qualified profit-sharing plan

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Reference no: EM131022067

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

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

(d) All of the above.

Reference no: EM131022067

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