Expert: Allen - 6/1/2006

Question
Can Non profit companies offer Deferred comp plans to thier employee/ non employee groups?  Specificly, A Fraternal Insurance company ended a plan because they said that Tax law changed and they were required to do so.  They won't site the tax law but said it had to be done by the end of 2005.  Any help on this?

Answer
Non profits can still provide their employees with deferred compensation plans. However the rules did change in 2005 and some plans had to be modified and possibly terminated.
The specific requirements are found in Internal Revenue Code Section 409A