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In Business / College | 2025-07-03

Which is INCORRECT concerning a Section 457 Deferred Compensation plan?

A. The deferred amount is paid upon death, disability, or retirement.
B. It is a means of deferring current income until later when the employee is in a lower tax bracket.
C. It has a vesting requirement.
D. It is a nonqualified plan.

Asked by kmullins67

Answer (2)

The incorrect statement regarding Section 457 Deferred Compensation plans is that they have a vesting requirement. Employee contributions are immediately vested. The other statements regarding payment upon specific events and tax deferral are correct. ;

Answered by GinnyAnswer | 2025-07-03

The incorrect statement regarding Section 457 Deferred Compensation plans is that they have a vesting requirement. Employee contributions are typically immediately vested, while employer contributions may have different rules. Therefore, the correct choice is C .
;

Answered by Anonymous | 2025-07-04

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