NQ Deferral election timing for a new hire sign-on bonus?

[NQ Forever]

Another deferral timiing question that's not clear (to me)......

If a plan sponsor is offering a new executive the opportunity to defer a sign-on bonus (not performance-based) with a vesting schedule of 12-months or more, under what deferral election timing rule does this fall?

Would it be certain forfeitable rights (election w/i 30 days of the award)?

Would it be initial plan eligibility (within 30 days of becomeing eleigible, and the deferral applies to amounts unearned)?

Thanks!

[Artie M]

I guess the characterization of this bonus as a "sign-on" bonus is throwing me off a little.... since it doesn't vest for at least 12 months, it doesn't sound like a sign on bonus... sounds like a "stay-on" bonus.  If it's actually a sign-on bonus why would the employee subject themself to a 12-month vesting schedule (assuming the vesting constitutes a SROF).  Anyways...

To me it appears to fall under the forfeitable (unvested) rights election rules that applies to compensation that will not vest unless the employee provides services to the employer for a period of at least 12 months,. so they have until on or before the 30th day after the date that the employee receives a legally binding right to the compensation to make a deferral election.  

I do not see it as falling under the first year of eligibility election rules because that election is primarily used (or is primarily useful) with regard to compensation earned during the first year in which an employee becomes eligible to participate in a NQDC Plan ("In the case of the first year in which a service provider becomes eligible to participate in a plan...."  Treas. Reg. §1.409A-2(a)(7)(i)).