One of the most important provisions of the American Jobs Creation Act of 2004 establishes a new regime for taxing deferred compensation.
New Tax Rules May Affect Payments To Retiring Partners
One of the most important provisions of the American Jobs Creation Act of 2004 establishes a new regime for taxing deferred compensation. Newly created Section 409A of the Internal Revenue Code likely will affect every arrangement now in place or hereafter adopted that promises the payment of deferred compensation to current and former employees, directors and other service providers. Such an arrangement may well include a partnership's unfunded retirement program for its partners.
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