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AAMS Module 9 Deferred Compensation and Other Benefit Plans for Key Executives Exam Practice Questions and Answers $8.99
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AAMS Module 9 Deferred Compensation and Other Benefit Plans for Key Executives Exam Practice Questions and Answers
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AAMS Module 9 Deferred Compensation and Other Benefit Plans for Key Executives Exam Practice Questions and Answers What are the major differences between qualified plans and nonqualified plans? - Answer️️ -a. Nonqualified plans may be established by either an employer or an employee. b. N...

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  • August 27, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • aams module 9 deferred compensation and other bene

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©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM

AAMS Module 9 Deferred Compensation and
Other Benefit Plans for Key Executives Exam
Practice Questions and Answers

What are the major differences between qualified plans and nonqualified

plans? - Answer✔️✔️-a. Nonqualified plans may be established by either an
employer or an employee.



b. Nonqualified plans may be discriminatory.



c. Nonqualified plans are exempt from some (such as participation and
vesting requirements), but not all, ERISA requirements.



d. An employer may not claim a deduction for a contribution to a
nonqualified plan until the employee-participant includes the benefit as
taxable income.



e. An employee-participant's salary contributions to a nonqualified plan
are tax deferred only if the funds are at risk (i.e., if unfunded, subject to the
claims of the employer's creditors or, if funded,

subject to substantial risk of forfeiture).

Page 1 of 10

, ©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM



f. The earnings on investments attributable to an informally funded (or
formally funded) nonqualified plan are taxed to the employer unless the
investment itself is nontaxable.



g. Nonqualified plans are not portable and cannot be rolled over into an
IRA. Money from qualified plans can be rolled over into an IRA. Return to
question

excess benefit plans - Answer✔️✔️-An excess benefit plan is a nonqualified
deferred compensation plan that provides benefits in excess of that to
which the employee would otherwise be entitled. For example, an
employee's benefits

provided by a company's qualified retirement plan may be limited by the
Section 415 limits on contributions and benefits.

supplemental executive retirement plans - Answer✔️✔️-A supplemental
executive retirement plan (SERP) is an unfunded nonqualified deferred
compensation plan that provides retirement and disability benefits for
high-level executives in excess of those

provided by the employer's qualified retirement plan, usually a defined
benefit plan.

top hat plans - Answer✔️✔️-A top hat plan is a type of SERP that is
unfunded and provides

Page 2 of 10

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