NQDC & 162m

[CaliBen]

If an executive has a $1.5 million base salary and defers $500,000, does that mean the company can deduct 1,000,000 of base salary this year, and then, assuming the executive has left the company at payout, deduct the $500,000 plus earnings at that time. The current bonus is structured to allow full deduction for cash bonus.

Thanks

[XTitan]

If an executive has a $1.5 million base salary and defers $500,000, does that mean the company can deduct 1,000,000 of base salary this year, and then, assuming the executive has left the company at payout, deduct the $500,000 plus earnings at that time. The current bonus is structured to allow full deduction for cash bonus.

Thanks

As long as the company isn't a TARP recipient that still needs to repay TARP money or a health insurance company, then yes.

[Guest Harry O]

Agree. However, this is viewed as a "loophole" by the tax staff in Congress and will likely be closed by future legislation.