Employer contributions to NQDC

[Guest 00144095]

I am a brand new attorney ( I have been sworn in for less than 24 hours) and I have a question about employer contributions to a NQDC plan. I am working on revisions of a plan that was redrafted earlier this year to comply with 409A. Are there any limits to employer contributions? (this is not a 457 plan). They use the title "Long Term Incentive Plan" for the employer contributions, but no explaination of what this means.

[Ron Snyder]

Sworn in already but not sworn at yet?

On IRS's website I found only one reference to LTIP: IRS Audit Guide

LTIP is simply a form of executive compensation. The limit on the amount is a limit imposed under IRC Section 162(m), that it be ordinary and necessary. For public corporations, the total compensation in all forms may not exceed $1,000,000. IRS informally imposes a similar limitation on compensation from non-public corporations (as noted in the citation).

[TCWalker]

The 162(m) is a deduction limit and is generally an aggregate calculation in the year compensation is employer deducted, regardless of when services are performed.

There may be real practical problems in overfunding a SERP, but I don't see an imposed threshold.

[Alf]

that was redrafted earlier this year to comply with 409A

???