Guest mbeinhaker Posted June 30, 2003 Posted June 30, 2003 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?
RTK Posted June 30, 2003 Posted June 30, 2003 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).
Everett Moreland Posted June 30, 2003 Posted June 30, 2003 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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