Code Section 457A: Overview | Practical Law
A Practice Note providing an overview of Section 457A of the Internal Revenue Code which limits the payment of nonqualified deferred compensation by certain "nonqualified entities" that are indifferent as to when they get a tax deduction for the compensation expense. This Note addresses what is a nonqualified entity, the types of service providers to which Section 457A applies, when compensation is included in gross income, how the amount included in income is determined, and the relationship between Section 457A and Section 409A of the Internal Revenue Code.