- 9 -
the right to such compensation or benefits are
performed. The determination of whether a plan, or
method or arrangement, defers the receipts of
compensation or benefits is made separately with
respect to each employee and each amount of
compensation or benefit. * * *
(b)(1) A plan, or method or arrangement, shall be
presumed to be one deferring the receipt of
compensation for more than a brief period of time after
the end of an employer's taxable year to the extent
that compensation is received after the 15th day of the
3rd calendar month after the end of the employer's
taxable year in which the related services are rendered
("the 2 1/2 month period"). * * *
* * * * * * *
(c) A plan, or method or arrangement, shall not be
considered as deferring the receipt of compensation or
benefits for more than a brief period of time after the
end of the employer's taxable year to the extent that
compensation or benefits are received by the employee
on or before the end of the applicable 2 1/2 month
period. * * * [Emphasis added.]
To summarize our complicated march through the Code and
regulations, section 1.83-6(a)(3), Income Tax Regs., implementing
section 83(h), refers us to section 1.162-10(a), Income Tax
Regs., which refers us to section 404(a)(5), which refers us to
section 404(b)(1) and (2), as implemented by section 1.404(b)-1T,
Temporary Income Tax Regs., 51 Fed. Reg. 4321 (Feb. 4, 1986),
which contains the test that we must apply.
Section 1.404(b)-1T, Temporary Income Tax Regs., provides
that if the benefits were "received" within the 2-1/2 month
period,9 the amounts would not be deferred compensation, they
9 Two and 1/2 months is often used interchangeably with 75 days.
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011