While nothing is final, my understanding would be:
1. The NQDC investement offering would be based upon the short list of funds the participant has direction.
2. Unless you have some special hooks in your plan, the company's fiscal year is immaterial. The participant is making a deferral election prior to 12/1 for monies to be paid to them between 1/1 and 12/31 of the following year.
3. Good question. While the regs say any participant changes can't take effect for five years, my understanding from others is the intent was to delay acceleration of benefits - converting a 10-year installment to a lump-sum. So I would doubt your request from 10-year to lump-sum, but possibly 10-year to 20-year. The next question should be who would really want to extend their unsecured creditor standing during retirement from 10 to 20 years? Having been a NQDC TPA for over 15 years I never had a single case of someone electing to extend their payout. Most elected lump-sum and most plans called for lump-sum as the default election. Most companies don't want to hassle with paying out NQ benefits on an extended basis.
4. Yes - As long as this is a plan level provision, not a participant election.
5. Yes - New participants can still come in anytime and commence deferrals 30 days later.
The next question is why would a HCE want to continue to participate in an unsecured NQDC when the new era of selective benefits are personally owned company sponsored benefits that provide greater value and none of these hassles. As well as none of the hassles or expenses for the company.
