Marino

What types of nonqualified plans are set up for partners? Can a partner defer his/her annual distribution of income to a nonqualified plan? Wouldn't the deferred amount just flow back to him/her anyway?

Is there any creative way to establish an executive deferred compensation plan for a partnership. I totally understand the flow-through issue but this firm is adamant that there has got to be a way to create such a program for partners that are retiring and getting a return of their capital contributions (all seven figure distributions). If they are recategorized as income partners instead of equity partners, would that make a difference or would the capital distributions still be treated as K-1 income? Any thoughts are welcome!!