Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

In the context of a nonqualified deferred compensation plan, an employer has the flexibility to offer tailored benefits specifically designed for particular executives or groups of employees. This customization allows employers to attract and retain top talent by providing benefits that align closely with the needs and circumstances of these high-level employees. Unlike qualified plans, which must adhere to strict nondiscrimination rules and provide equal treatment to all employees, nonqualified plans can be structured to provide more significant benefits to selected individuals, making option A the most accurate choice.

The other options do not accurately reflect the capabilities of nonqualified deferred compensation plans. Guaranteeing high returns on investments is not a standard feature of these plans, as they typically do not involve employer guarantees of investment performance. Providing equal treatment to all employees is contrary to the fundamental nature of nonqualified plans, which can favor certain individuals. Lastly, while matching contributions is a feature of some retirement plans, nonqualified deferred compensation plans don’t typically operate in this fashion; they are more flexible and individualized. Therefore, option A stands out as the best representation of what employers can do with nonqualified deferred compensation plans.