nonqualified deferred compensation plan

An unfunded compensation arrangement, frequently offered to executives, that defers compensation and the recognition of its accompanying taxable income to a later date.

• It is termed “nonqualified” because it does not qualify for favorable tax treatment under IRC (26 USCA) § 401(a). The plan avoids the restrictions on qualified plans, esp. the limits on contributions and benefits and rules against discrimination in favor of highly compensated employees. [Cases: Internal Revenue 3596.]

---

词条贡献者

资深译员Lester，毕业于美国一流的高级翻译学院，专注翻译各种与复杂国际仲裁有关的法律文件。