Nonqualified Deferred Compensation Audit Techniques Guide (02-2005)

Home | Accessibility | Tax Stats | About IRS | Careers | FOIA | The Newsroom | Site Map | Español | Help Nonqualified Deferred Compensation Audit Techniques Guide (02-2005) Search for... NOTE: This guide is current through the publication date. Since changes may have occurred within:after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. Advanced SearchOverview Tips for successful searchingA nonqualified deferred compensation (NQDC) plan is any elective or nonelectiveplan, agreement, method, or arrangement between an employer and anemployee (or service recipient and service provider) to pay the employeeHome > Businessescompensation some time in the future. NQDC plans do not afford employers andemployees with the tax benefits associated with qualified plans because, unlike qualified plans, NQDC plans do not satisfy all of the requirements of § 401(a).Charities & Non-ProfitsCorporations Despite their many names, NQDC plans typically fall into four categories. SalaryReduction Arrangements simply defer the receipt of otherwise currently includibleInternational Businessescompensation by allowing the participant to defer receipt of a portion of his or herPartnerships salary. Bonus Deferral Plans resemble salary reduction arrangements, exceptSmall Bus/Self-Employed they enable participants to defer receipt of bonuses. Top-Hat ...