Subsequent Deferral AFTER Separation From Service

[Guest gscrowley]

409A(a)(4)© lays out subsequent deferral rules for NQDC plans. 409(a)(4)©(iii) specifically seems to require that a subsequent deferral election be made 12 months BEFORE payment could otherwise be made under a separation from service plan that provides for payments to the participant over 7 years. Neither the code, regs, or examples talk about subsequent deferrals being made after payment otherwise would have been made (after separation from service).

For instance, if a participant retires and starts receiving payments under a 7 year plan, can he then elect to stretch out payments over a 10 year period as a subsequent deferral?

Can any subsequent deferral be made AFTER the first scheduled payments have begun?

I can't find any guidance on this issue, so any help would be appreciated.