Now that tax rates have increased for high earners, have nonqualified deferred compensation (NQDC) arrangements once more become a valuable tool? This article looks at whether these changes have made nonqualified deferred compensation plans more attractive. It also examines how certain features of NQDC plan design can cause you tax problems.

Yes, substantially. The IRS Data Book discloses a large increase in audits among people whose adjusted gross income is over $500,000 per year…