which one of the following accurately represents the general tax consequences to an employer and employee under a nonqualified plan? An employer receives an immediate deduction for a contribution for an employee when paid, and the employee will recognize income when the amount is credited to his or her account is nonforfeitable.
An employer does not receive a deduction for a contribution to an employee until the employee recognizes the income upon receipt.
An employer receives a deduction when asset investments are made to informally fund an employee's nonqualified plan benefit and the employee recognizes an identical amount as income at the same time.
An employer receives a deduction for a contribution to an employee when paid, and the employee will not be taxed on the contribution until it is withdrawn.
