Time and Form of Payment

[Guest gaham]

I have a deferred comp plan that pays different amounts based on the type of separation from service (cause, no cause, etc). The time and form of payment is same for all specified types of separation (payment within 90 days following separation and payment in lump sum). I think I'm compliant with the single time and form of payment rules, am I not?

[Guest L337pwner5]

Sounds like you're ok. If you had different time and form of payment for different types of separation from service, you'd have to be careful to abide by 1.409A-3©. But one time and form of payment for any separation seems not to raise any concerns.

[Guest George Chimento]

Sounds like you're ok. If you had different time and form of payment for different types of separation from service, you'd have to be careful to abide by 1.409A-3©. But one time and form of payment for any separation seems not to raise any concerns.

[Guest George Chimento]

Agreed.

The multiple time and form of payment rules are a bear. The regulations do not have enough examples.

Assume a Participant elects a fixed date for payment of deferrals, without regard to separation from service. Is there a problem with any of the following plan designs?

1/ plan requires payment on separation from service, if earlier than fixed date.

2/ plan requires payment on separation from service if earlier than fixed date, but only if separation occurred prior to age 55. Otherwise, payment is on fixed date.

3/ plan requires payment on separation from service if earlier than fixed date, but only if separation occurred prior to age 55 and 10 years of service. Otherwise, payment is on fixed date.

Regards.