I read through this post:
https://www.kitces.com/blog/moving-lowe ... mpensation
this part: "And for employees with access to nonqualified deferred compensation, confirming that the plan's benefits pay out as a series of substantially equal periodic payments over at least a 10-year period ensures that they meet the definition of "retirement income" under Section 114. "
What does "substantially" equal payments mean? if I have an NQDC that is going to pay out over 10 years in retirement but annually the payments would be something like $40k, $50k, $60k, $50k, $40k etc... are these substantially equal? or do they really need to be $50k, $50k, $50k etc?
I fall exactly into this case. I put money into a NQDC that will pay out over 11 years then retired few months ago. Currently living in OR and moving to WA that has no income tax. However, although the money is distributed among 11 year payout, they are not in equal chunks.
https://www.kitces.com/blog/moving-lowe ... mpensation
this part: "And for employees with access to nonqualified deferred compensation, confirming that the plan's benefits pay out as a series of substantially equal periodic payments over at least a 10-year period ensures that they meet the definition of "retirement income" under Section 114. "
What does "substantially" equal payments mean? if I have an NQDC that is going to pay out over 10 years in retirement but annually the payments would be something like $40k, $50k, $60k, $50k, $40k etc... are these substantially equal? or do they really need to be $50k, $50k, $50k etc?
I fall exactly into this case. I put money into a NQDC that will pay out over 11 years then retired few months ago. Currently living in OR and moving to WA that has no income tax. However, although the money is distributed among 11 year payout, they are not in equal chunks.
Statistics: Posted by Oatmeal — Sun Sep 29, 2024 4:25 pm — Replies 3 — Views 181