Advisories

Congress Moves Toward Passing New Legislation Regarding Nonqualified Deferred Compensation Plans

October 2004

Congress is moving toward passing sweeping new legislation which would tighten the tax laws in regard to nonqualified deferred compensation plans or other individual or group arrangements deferring recognition of compensation income for federal income tax purposes. Although the proposed legislation is not final and may still be revised, it appears likely that this legislation will be signed into law this year largely as it is currently drafted, with only minor revisions, and that its provisions could become effective as early as January 1, 2005. Consequently, there are actions that you may want to take now in order to prepare for the new requirements.