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Which of the following statements concerning nonqualified deferred compensation plans is true?
Correct Answer: D
Nonqualified deferred compensation (NQDC) plans allow employees to defer income until a future date. * D is correctbecause NQDC funds remain part of the company's general assets, which creditors may claim if the company goes bankrupt. * Ais incorrect as NQDC plans are not subject to ERISA rules. * Bis incorrect because these plans do not require IRS review. * Cis incorrect as NQDC assets are not required to be held in escrow.