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To Defer Or Not To Defer, That Is The Question: Same-Year Deferral Options Under Section 409A
by David Zelikoff

If you expect your tax rates to be lower in the future, you may want to defer income into later years. One such option is to take advantage of certain same-year deferral opportunities permitted under Section 409A of Internal Revenue …

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More Articles:
NQDC Enrollment Made Simple: What You Must Decide Before You Start
UPDATES! The Terms Of Your Company’s NQDC Plan: What You Can Expect (Part 1)
Your Company’s NQDC Plan: What You Must Understand To Maximize Its Value
FAQs
Is there a distribution-election strategy when I’m uncertain in the intermediate term about my own cash flow and the company’s finances?

If you have analyzed your company’s financial situation and have concerns about its bankruptcy risk, elect the…

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UPDATES! What restrictions affect when I can receive NQDC distributions and what I can elect? What can trigger an early payout?

Your plan will set limits and have specific rules on when distributions will be made and what you can elect. In addition, IRC Section 409A controls the…

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More FAQs:
UPDATED! My tax rates are likely to rise in the future. Can I change my deferral election and instead receive the money this year? Similarly, can I move a scheduled future income distribution into this year?
Why do I need to make my deferral election in the year before I actually would receive the compensation?
Is it better to elect distributions as a lump sum or as an installment over a period of years, like an annuity?
Which is better: a class-year plan or an account-based plan?
What are class-year plans and account-based plans for deferrals and distributions?
What is a laddering or bucket approach to distributions?
If I am not certain about when I should take my distributions, when should I elect to receive them?
How much of my compensation should I defer?
Can I at least change my distribution election when I lose my job?
Can I elect a different timing for just a part of my already scheduled future distributions, or must my subsequent deferrals all be treated the same?
How do I change the timing or form of my distribution?
UPDATES! Can I (or my company) fix a tax mistake I made in deferring my income or in the distribution without being penalized?
What are the rules on taxation and deferral elections for stock grants that allow deferral of share delivery at vesting?
Can I change my distribution election to receive the money at another date?
UPDATES! Can my deferral election ever be canceled?
What are the IRS rules for the timing of a deferral election? Can an election be revoked or changed?
Can I make an evergreen election that applies the same distribution year and type to all the amounts I defer?
At what time of year do I make my election to defer income? Is the timing different for performance-based compensation?
Do I need to defer all of the distributions to the same year?
Do I need to defer the same percentage of my salary and my bonus?
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NQDC Taxes Part 1
NQDC Taxes Part 2

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