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Frequently Asked Question
UPDATES! What is the likelihood of an IRS audit for people with nonqualified deferred compensation?

In general, the more you make, the more likely you are to be audited by the IRS. Furthermore, sudden income spikes, which can be caused by NQDC distributions…

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More FAQs
How is a secular trust taxed?
What is the tax treatment and withholding for nonqualified defined benefit plans, such as SERPs?
How is a rabbi trust taxed?
What withholding rate applies to the distributions under my nonqualified plan? How are the taxes collected?
What appears on my W-2 for the year of income distribution?
How does my company obtain money from me to pay withholding taxes when I receive distributions under the NQDC plan?
What appears on my W-2 for the year of income deferral?
What is this Section 409A I keep hearing about?
What are the rules on taxation and deferral elections for stock grants that allow deferral of share delivery at vesting?
Is the tax treatment different if I elect to receive my distributions as a lump sum instead of installments?

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