Publications

New Tax Rules Affect Nonqualified Deferred Compensation Arrangements

Spring 2005
Private Equity Developments - Spring 2005

The American Jobs Creation Act of 2004 (AJCA), which was signed into law on October 22, 2004, includes new rules governing nonqualified deferred compensation. The new rules are intended to curb certain perceived abuses of nonqualified deferred compensation arrangements and to address Congress's concern that too often under the previous nonqualified deferred compensation rules, executives were permitted an inappropriate degree of security and control with respect to their deferred amounts.