Nonqualified Deferred Compensation

1
Nonqualified Deferred
Compensation
United States v. Drescher
yr.1 yr.2 yr 32
annuity purchase - 5,000
Mr. D retires
Mr. D dies
return (profit) on 5,000 annuity
1,500 6,500 total payments less 5,000
investment
20 yr. payout total payments 6,500
5,000 investment growing in value
2
Alternative Tax Consequences from
Employer-Purchased Annuity
Assumes 1. Annuity Purchase Price
5,000 2. Receipt Upon Payout
6,500 3. Full lump-sum payout in year
20 Time Drescher Approach
Increasing Value Approach Qualified
Plan Purchase 5,000 5,000
0
Interim years 0
1,500
0 Payout 1,500
0
6,500 Total
6,500 6,500
6,500
3
Superstar Management (SSM) Abdul-Jalil,
CEO In Abdul-Jalil We Trust
4

• TESTIMONIALS ON ABDUL-JALIL
  The man who turns hits into Million - The
  Tribune"You really are the best." - L. BOSTOCK,
  California Angels."GOD sent me an Angel - M.C.
  HAMMER.Smart Youth, most intriguing, has the
  Baseball world at his feet." - N.Y. POST ."I
  dont know what I would have done without you!."
  - J.C. WATTS, U.S. HOUSE of REPRESENTATIVES."Tha
  nks for directing me to the Sonics." - GUS
  WILLIAMS, NBA.

5

Al-Hakim
v. Commisioner
Angels
K agents fee 112,500 payable over 10 yrs.
(11,250 per year) actual transfer in yr
1 112,500 as interest-free loan
Player - Bostock
Agent - Al-Hakim
112,500 loan
repayments on loan by reducing fee still
owed by player
No money actually changes hands other than
112,500 payment to Al-Hakim in year 1