Limited Opportunity for Tax Deferral of 2005 Performance Bonuses
June 17, 2005
Companies with nonqualified deferred compensation plans sometimes allow participants to defer performance-based bonuses under the plans. New IRS rules now provide a limited planning opportunity to structure these performance-based bonus deferrals to comply with a new tax law that comprehensively regulates nonqualified deferred compensation plans.
by Thomas J. McCord, Esq.
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.