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Since the compensation is unfunded and unsecured, there is usually no difficulty in avoiding constructive receipt and therefore deferring taxation.
One of the few remaining devices for deferring tax involves the use of nonqualified deferred compensation agreements (DCAs).
A plan, or method or arrangement, shall not be considered as deferring the receipt of compensation or benefits for more than a brief period of time after the end of the employer's taxable year to the extent that compensation or benefits are received by the employee on or before the end of the applicable 2 1/2 month period.