What issues arise if plan is amended to permit participant to select a

[Guest RW]

Nonqualified deferred compensation plan permits distributions in form of either lump sum or installment payments over period of a maximum of 10 years. What issues arise if plan is amended to permit distributions in installments of amounts selected by participant (i.e. 10,000 the first distribution year, $5,000 the next two years, and none the fourth year, etc.)?

[Guest]

Well if it's amended before the participants have earned the compensation being deferred, there are no problems. Otherwise, there is a constructive receipt issue when the participant has a right to get the money.