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Taxes : Section 409A Rules
by Michael G. Goldstein

For your nonqualified deferred compensation to be an effective form of saving and investing, you and your company’s NQDC plan must comply with Section 409A of the Internal Revenue Code (referred to below as 409A). Failure to meet these requirements will lead to immediate taxation plus heavy penalties. This article delves into the details of 409A that you need to know.

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This depends on how many hours of work you continue to perform. Those pesky Section 409A rules are very specific about when distributions are allowed under your NQDC plan and what constitutes a termination of employment. The final regulations lengthily discuss…

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