409A to stock arrangements, permitted distributions and the election to defer
While tax-deferred growth on income is still attractive, participants with large account balances have become increasingly concerned they may not see the compensation they elected to defer
You may defer
taxable income by purchasing certain certificates of deposit or U.
The principal one is to allow a select group of executives to defer
income beyond the limits imposed by Congress on qualified plans.
We believe that a terminable-at-will employee should properly be able to elect to defer
future, unearned compensation at any time prior to the period for which the compensation is earned.
It also decided to defer
the effective date until 1992, on the basis that a one-year period is not sufficient time to consider requests for amendment, allow due process for any changes that might result, and still allow companies time to implement the standard.
Plan participants are able to defer
income recognition while attaining some assurance that funds will be available to make the promised payments.
to a future year the actual payout to the shareholder-owners.
Thus, the temporary regulations provide that if a parent company enters into a long-term contract required to be accounted for under the percentage-of-completion method, any subsidiary supplying goods and services to the parent in connection with that contract must report its income under the percentage-of-completion method and cannot defer
gain under Treas.