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Frequently Asked Question
Are severance payouts subject to the same six-month delay as other NQDC payments?

Severance payments and benefits are generally subject to Internal Revenue Code (IRC) Section 409A, including the requirement of a six-month delay in payments for select employees of a public company. However, the 409A regulations provide several exceptions to payments made upon an involuntary separation from service. These exceptions include…

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More FAQs
When is a furlough or leave of absence a termination of employment under my NQDC plan?
After I stop working for my company, can I continue to consult or perform any services for it without causing problems related to my NQDC distributions?
Can I at least change my distribution election when I lose my job?
Will my NQDC plan have a noncompete provision? Is it enforceable?
For how long is my NQDC payout delayed when I stop working at my company?
What is considered a separation from service? Why does this concept matter, even when you switch to part-time employment and consulting?
Can the NQDC plan accelerate payment differently depending on the type of job termination?
What happens to my NQDC when I lose my job?
If my company’s acquisition or my severance triggers payouts from my NQDC plan, will the payouts trigger the excise tax for excess parachute payments?
When I leave my job, can I roll over my NQDC account to an IRA or my new company’s 401(k) plan?

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