Year-end deadline for nonqualified deferred compensation plans.To retain tax-deferred tax-de·ferred adj. 1. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. 2. status under new section 409A, nonqualified deferred compensation plans must take certain steps by Dec. 31. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 240-page proposed regs (www.treas.gov/press/releases/reports/reg15808004.pdf) issued Sept. 29, initial deferral deferral - Waiting for quiet on the Ethernet. elections and elections to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. compensation for services performed in 2006 must be made by Dec. 31, unless the compensation qualifies as "performance-based compensation." Plan sponsors must also allow service providers to cancel a deferral election, terminate participation in the plan, or make amendments to terminate grandfathered plans by year-end. Amending plan documents and substituting non-discounted for discounted stock options and stock appreciation rights is extended to the end of 2006 under IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Notice 2005-1, www.irs.gov/pub/irs-drop/n-05-01.pdf. Until further guidance is issued for arrangements between partnerships and partners, taxpayers must continue to rely on Notice 2005-1, Q&A-7, www.irs.gov/pub/irs-drop/n-05-01.pdf. |
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