jpod Posted June 2, 2016 Share Posted June 2, 2016 NQDCP provides for a payment on a single, specified date, whether or not a separation from service has occurred, but the amount payable at that single, specified date is less if termination of employment occurs prior to that date. However, there is one exception: If an involuntary separation from service occurs prior to the single, specified date, the accrued amount is paid in a single lump sum upon separation from service. Does this exception violate the general rule in 1.409A-3© that there be a single payment methodology for all payments triggered by a separation from service? I think not, because the only payment triggered by a separation from service is a separation from service described in my exception. Any different views? Link to comment Share on other sites More sharing options...
XTitan Posted June 7, 2016 Share Posted June 7, 2016 Playing devil's advocate for a moment. Is the definition of involuntary separation subject to abuse? Is it objective and non-discretionary? 1.409A-3(c )(1) gets you the double trigger of CIC/separation and 1.409A-3(c )(2) gets you diferent forms based on age/YOS, but there isn't anything permitting a specific form for involuntary separation. - There are two types of people in the world: those who can extrapolate from incomplete data sets... Link to comment Share on other sites More sharing options...
jpod Posted June 7, 2016 Author Share Posted June 7, 2016 There is no opportunity for abuse. Here's where I am coming from: The payment is at a specified date (which happens to be the 5-year anniversary of the NQDCP), and not dependent upon a SFS, with one exception, that being an involuntary SFS. Therefore, I think, you don't need either of the exceptions because there is only one form of payment on account of a SFS. Link to comment Share on other sites More sharing options...
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