# Prop. Treas. Reg. § 1.409A-2: Deferral elections.

Proposed regulation, not in force. REG-123854-12, 81 FR 40569, published 2016-06-22 <https://www.federalregister.gov/documents/2016/06/22/2016-14331/application-of-section-409a-to-nonqualified-deferred-compensation-plans>. Interprets 26 U.S.C. § 409A.

Par. 4. Section 1.409A-2 is amended by revising paragraph (b)(2)(i) to read as follows:

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(b) * * *

(2) Definitions of payments for purposes of subsequent changes in the time or form of payment —(i) In general. Except as provided in paragraphs (b)(2)(ii) and (iii) of this section, the term payment refers to each separately identified amount to which a service provider is entitled to payment under a plan on a determinable date, and includes amounts applied for the benefit of the service provider. An amount is separately identified only if the amount may be objectively determined under a nondiscretionary formula. For example, an amount identified as 10 percent of the account balance as of a specified payment date would be a separately identified amount. The determination of whether a payment is or has been made for purposes of this paragraph (b) is made in accordance with the rules in § 1.409A-1(q). For additional rules relating to the application of this paragraph (b) to amounts payable at a fixed time or pursuant to a fixed schedule, see § 1.409A-3(i)(1).

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