austin3515 292 Report post Posted December 31, 2019 Deferred comp plan provides that benefits accrued will vest based on a rolling vesting schedule. The sponsor and the Participants want the money to become vested if the sponsor is bought. Any words of advice and/or caution? Share this post Link to post Share on other sites
XTitan 28 Report post Posted January 2 Acceleration of vesting is not a problem under 409A. Share this post Link to post Share on other sites
CuseFan 196 Report post Posted January 2 Vesting would trigger application of payroll taxes, unless you have a DB SERP formula with a pension offset where the present value cannot currently be reasonably ascertained. Share this post Link to post Share on other sites
austin3515 292 Report post Posted January 2 Thank you, I'm vesting and paying out on essentially the same day. Good point though! Share this post Link to post Share on other sites
Bob the Swimmer 17 Report post Posted January 2 AUSTIN--- I think if I were the participant, I'd want a rabbi trust to protect my account balance against change of heart or change of control by the employer because a new employer could try to renege on the agreement to pay out. Others may feel differently. BOB Share this post Link to post Share on other sites
