Deferred Compensation and elective deferrals

[bzorc]

A former partner of a company is retiring December 31, 2014. However, this partner will be receiving deferred compensation in 2015 and 2016. They have asked whether or not they can make elective deferrals off of this compensation during 2015 and 2016. They will not be working in either of the two years.

It is my belief, in reading the plan document of the company, that this deferred compensation cannot be used for deferral purposes, as the partner is performing no services for the company in 2015 (or 2016). Just want to make sure that my interpretation is correct.

Thanks for any replies.

[Lou S.]

I would agree with you.