Hi everyone,
I have a client with a closely held c-corporation who is deferring most/all of his income into a NQDC plan. The earning that are put aside/"invested" for him are currently put in an index fund. However, he would like to have the NQDC fund lend him money. I feel like this would not workout in an audit, but he has consulted with a tax attorney who states that the NQDC plan is making him a loan with interest/principal to be paid as lump sum in the future (20 years from now) similar to a mortgage. I feel as though this is more a scheme and will not work in the best interest of the client.
