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1. What taxation applies at the time I defer salary and/or a bonus under a nonqualified deferred compensation plan?





2. When do you usually owe ordinary income taxes on salary and/or a bonus put into a nonqualified deferred compensation plan?





3. What is the tax treatment of a company match or contribution made through the NQDC plan?





4. Will I owe additional payroll taxes (Social Security and Medicare tax) on the interest or investment earnings credited to my NQDC account when it is distributed?





5. When I get my distributions from the NQDC plan, are the taxes I owe based on the value of the amount I initially deferred or on the value of the distribution I receive?





6. When I defer income as an employee, and when I later receive the distributions, what tax form do I receive that reports all these?





7. Why is Section 409A of the tax code so important to understanding nonqualified deferred compensation?





8. Beyond immediate taxation on the deferred amount, what penalty applies to you if your company's NQDC plan does not follow the rules of Section 409A?





9. Under the rules of Section 409A, what is the maximum amount of work you can continue to perform for your company after a separation of service (i.e. termination of employment) without potentially triggering penalties?





10. Are the tax rules the same for outside directors or consultants as for regular employees?





11. When I am receiving Social Security payments in retirement, will NQDC distributions cause my Social Security benefits to be taxed?





12. Will I owe taxes in the state I used to work in when I now live in a state with no income tax?





13. Can you roll over NQDC distributions into an IRA and keep the tax-deferred status?





14. Will NQDC distributions cause Social Security benefits to be taxed?





15. After death, are NQDC distributions still included in your estate for tax purposes if the plan is set up to pay them in a lump sum to a beneficiary when you die?