austin3515 308 Posted December 31, 2019 Report Share 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? Link to post Share on other sites
XTitan 35 Posted January 2, 2020 Report Share Posted January 2, 2020 Acceleration of vesting is not a problem under 409A. Link to post Share on other sites
CuseFan 233 Posted January 2, 2020 Report Share Posted January 2, 2020 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. Link to post Share on other sites
austin3515 308 Posted January 2, 2020 Author Report Share Posted January 2, 2020 Thank you, I'm vesting and paying out on essentially the same day. Good point though! Link to post Share on other sites
Bob the Swimmer 25 Posted January 2, 2020 Report Share Posted January 2, 2020 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 Link to post Share on other sites
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