Counselor’s Corner – Tax Tip: Nonqualified Deferred Compensation Red Flags
The Internal Revenue Code (the Code) includes various provisions governing employee benefits and compensation arrangements. One such provision is Code Section 409A, which applies to nonqualified deferred compensation. Nonqualified deferred compensation is defined as “any [arrangement] that provides for the deferral of compensation. . . .” An arrangement provides for the deferral of compensation if a service provider (e.g., an employee) obtains a legally binding right to compensation in one taxable year that is, or may be, payable in a later taxable year.
Counselor’s Corner – Tax Tip: Nonqualified Deferred Compensation Red Flags Read More »