Question $18(2\mathrm{.}5$ points$)$

All of the following statements concerning nonqualified deferred compensation are correct EXCEPT:

A secular trust becomes taxable to the employee when there is no longer a $-$ substantial risk of forfeiture.

employees fgolden handcuffa$)$

A Rabbi trust provides the employee with protection against both a change in control and employer insolvency.

Arr empioner is permitted to discriminate in favor of hey execuburs in offerest plan benefits.