New Act Lessens Flexibility of Deferred Comp

Opiela, Nancy
February 2006
Journal of Financial Planning;Feb2006, Vol. 19 Issue 2, p30
Academic Journal
The article discusses the impact of the addition of Section 409A to the U.S. Internal Revenue Code, part of the American Jobs Creation Act of 2004, on the implementation of the nonqualified deferred compensation plan (NQDC). It is emphasized that the law adds more restrictive rules for the NQDC plan implementation that reduce plan flexibility and complicate planning. Remarks from Marty Van Acker of Nykiel Carlin Financial Services in Illinois, regarding the old rules affecting the NQDC plan are provided.


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