3577 / When is a nonqualified deferred compensation plan excluded for purposes of determining FICA and FUTA taxes?

(1) Stock options, stock appreciation rights, and other stock value rights, but not phantom stock plans or other arrangements under which an employee is awarded the right to receive a fixed payment equal to the value of a specified number of shares of employer stock

(2) Some restricted property received in connection with the performance of services

(3) Compensatory time, disability pay, severance pay, and death benefits

(4) Certain benefits provided in connection with impending termination, including window benefits

(5) Excess (golden) parachute payments

(6) Benefits established 12 months before an employee’s termination, if there was an indication that benefits were provided in contemplation of termination

(7) Benefits established after termination of employment

(8) Compensation paid for current services.¹

1. Treas. Reg. §§ 31.3121(v)(2)-1(b)(4), 31.3306(r)(2)-1(a).