Which of the following is a key advantage of a nonqualified deferred compensation plan from the employer's perspective?

A key advantage of a nonqualified deferred compensation plan from the employer's perspective is that it allows for discrimination among employees. This means that employers have the flexibility to provide these plans to select employees, typically those in higher earning positions or those with key roles in the organization, without the requirement to offer the same benefits to all employees.

This discretion enables companies to tailor their compensation strategies to attract and retain top talent while managing costs and administrative complexities associated with more inclusive benefits plans. Nonqualified plans can also serve as a powerful tool for incentivizing performance among key personnel by deferring compensation until a later date, thus aligning employees' interests with the long-term goals of the organization. This is particularly useful in planning for retirement or rewarding loyalty and performance over time.

The other options have specific limitations or requirements that make them less advantageous within the context of nonqualified deferred compensation plans. For instance, nonqualified plans do not need to be offered to all employees, which contrasts with qualified plans that must adhere to nondiscrimination rules. Additionally, these plans do not guarantee funding through a trust, as is common with some qualified plans, nor do they completely bypass all regulatory requirements, as certain IRS rules still apply.