Which tax rates apply to distributions I receive in company shares: ordinary income or capital gains? What is the value of the distributed shares based on?

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You have ordinary income based on the value of the stock at the time of distribution. This value will be your…

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More FAQs

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?

When I retire, or when I reach the age when I thought I would retire, what happens with my NQDC distributions?

Can certain life events accelerate distributions, such job loss, disability, an unforeseeable emergency, or death?

What happens if my company refuses to pay my distributions?

Can distributions from NQDC plans affect distributions from qualified plans, such as a 401(k)?

Why did some executives in the past have the ability to receive a lump distribution of all their assets in the NQDC?

Can my company discontinue or terminate its nonqualified deferred compensation plan and give me a lump-sum distribution?

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