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Non-Qualified Deferred Compensation Plans: Class Year or Account-Based?
Fulcrum Partners LLC Link to more items from this source
June 14, 2021

"Account-based plans are generally viewed as simpler for participants to understand and manage. Account-based structures also fit well within the framework of IRC Section 409A, which focuses on proper administration of distributions. Class-year structures offer flexibility due to the greater number of sub-accounts created. However, this also produces more complexity for distribution management."

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