Which of the following statements is TRUE regarding nonqualified deferred compensation (NQDC) plans?

Nonqualified deferred compensation (NQDC) plans are often used as a recruitment and retention tool for key executives and highly compensated employees (HCEs). Unlike " qualified " plans (like 401(k) plans), NQDC plans are not subject to the strict non-discrimination testing required by ERISA. This means they can be offered exclusively to a select group of management or HCEs, allowing them to defer compensation above the limits set for qualified plans. While they are often used to supplement retirement income, they are not used only for retirees (Option B), as active employees make the deferrals. They are governed by Section 409A of the Internal Revenue Code, whereas 403(b) plans (Option C) are qualified plans for non-profits and schools. NQDC plans involve significant tax risk if not structured correctly to avoid " constructive receipt " issues.