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Guest mbeinhaker
Posted

What are the potential ramifications of including a noncompetition clause or non-disclosure clause in a NQDC document? Can benefits be subject to forfeiture even once the exec is receiving benefits and retired from the employer?

Posted

To your specific question, benefits under non-qualified plan can be forfeited for violation of noncompete or nondisclosure (of course, forfeiture language would have to be included in doc).

Posted

I would determine whether one result of the forfeiture provision would be that the deferred compensation would not be subject to FICA until paid. That would be a poor tax result. Start with 31.3121(v)(2)-1. My memory is it directs you to the § 83 regulations.

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