Nonqualified deferred compensation plan
Nonqualified deferred compensation plan (1)In general.Except as otherwise provided in this paragraph (a), the termnonqualified deferred compensation planmeans any plan (within the meaning ofparagraph (c)of this section) that provides for the deferral of compensation (within the meaning ofparagraph (b)of this section). Whether a plan provides for the deferral of compensation generally is determined at the time the service provider obtains a legally binding right to the compensation under the plan, and is not affected by any retroactive change to the plan to characterize the right as one that does not provide for the deferral of compensation. For example, amounts deferred under a nonqualified deferred compensation plan do not become an excluded death benefit if the plan is amended so that the amounts are payable only upon the death of the service provider. If a principal purpose of a plan is to achieve a result with respect to a deferral of compensation that is inconsistent with the purposes of section 409A, the Commissioner may treat the plan as a nonqualified deferred compensation plan for purposes of section 409A and the regulations thereunder.