Secular trust for her benefit at retirement

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Mariane employer has recognized her invaluable service to the company and has set up a secular trust for her benefit at retirement. What are the advantages of this trust arrangement for Mariane?

1) she is able to defer tax on a portion of her current income.

2) Since Mariane currently pays tax on the contributions to the trust , her retirement payments from the trust will be tax free.

3) Mariane has the security of knowing that her benefits cannot be taken over by creditors of the company.

4) She can elect income deferrals into the trust after the associated services have been performed.

A) 1 and 3 only

B) 1 and 4 only

C) 2 and 3 only

D) 1, 3 and 4 only

Reference no: EM131556652

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