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I personally see no compelling need for there to be any kind of asset accumulation vehicle that would allow very highly-paid individuals the opportunity to amass wealth on a tax-favored basis. I find it very difficult to feel any sympathy for people who may no longer have access to such vehicles. As far as I am concerned, they can live within the bounds of qualified retirement plans (even if it means providing larger benefits to the rank and file employees) or they can save up their money on a taxable basis. Why are there such things as non-qualified plans that do not involve full immediate taxation (at least at the point where benefits/balances vest)?

It may sound selfish, but as nobody has ever offered me any nonqualified deferred compensation... Does the proposal change what is meant by "substantial risk of forfeiture"? As I recall, the tax magic behind Rabbi Trusts was that since, in the event the sponsor went belly-up, the assets in the trust would be reachable by the sponsor's creditors, the arrangement was considered to involve a substantial risk of forfeiture, and therefore not currently taxable when the covered individual became vested.