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Subsequent Deferral rules -- 12 months before trigger, or 12 months before actual payment date?


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Our Nonqual Plan provides that payment will be made 14 months following termination of employment.  

The idea is that if a participant terminates, he/she still has a couple months after termination to make a subsequent deferral election.  This seems to be compliant, because the 12 month/5 year rule only requires that the subsequent deferral be made 12 months before the payment date, not the date that triggers payment (e.g. the termination date).

Am I reading the rules correctly that this is allowed?

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