For some executives, the most important tax deadline of the year isn't April 15. It's December 31.
If you have access to a nonqualified deferred compensation (NQDC) plan, deferral elections typically must be made before the compensation year begins.
Under IRC Section 409A, once that window closes, retroactive elections are not permitted.
Eligible executives may be able to defer salary, bonuses, and incentive pay and delay taxation until a lower-income year.
Missing the election means missing that opportunity entirely for that year.
What often gets overlooked is the timing.
Year-end is busy, and a deadline that arrives before income is received can be easy to miss.
📅 If this applies to your situation, now is the time to review your elections before Q4.
💡 Consider asking your financial professional to work with your tax, legal, or accounting professionals if you want more information on how nonqualified deferred compensation works.