All the following statements concerning the tax advantages of a qualified retirement plan are correct EXCEPT:

A. Investment income on employer contributions generally is not subject to federal income tax until paid in the form of benefits.

B.Contributions made by the employer receive favorable tax treatment.

C. An employee is not considered to be in receipt of taxable income until benefits are distributed.

D. Employers designate when they may make plan contributions whether and these funds will be taxed as capital gains or ordinary income.

E. To obtain tax benefits, a retirement plan must achieve a qualified status by meeting the requirements of the Internal Revenue Code.