What kind of businesses are considered ideal clients for 409A Deferred Compensation Plans?
| Company Type | Long-Term DCP | Short-Term DCP2 |
|---|---|---|
| Public Company | ✔ | ✔ |
| Private Company | ✔ | ✔ |
| Nonprofit | X | X |
| Eligible Group | Long-Term DCP | Short-Term DCP2 |
|---|---|---|
| Highly Compensated/Management < 15%1 | ✔ | ✔ |
| Highly Compensated/Management > 15% | X | ✔ |
| Board of Directors | ✔ | ✔ |
| 1099 Employees3 | ✔ | ✔ |
| Majority Shareholders - S Corp | X | X |
| Minority Shareholders - S Corp | ✔ | ✔ |
| Majority Shareholders - C Corp | ✔ | ✔ |
| Minority Shareholders - C Corp | ✔ | ✔ |
| Non-Highly Compensated | X | ✔ |
1Total employee base
2Not subject to 409A
3Best established as a separate plan