Treatment of Nonstatutory Stock Option For 457A

Revenue Ruling 2014-18 provides guidance on the treatment of a nonstatutory stock option or a stock appreciation right granted by a nonqualified entity for purposes of Section 457A.

 

Document Excerpt

Accordingly, a nonstatutory stock option exempt from section 409A is exempt from section 457A. In addition, a stock appreciation right exempt from section 409A that at all times by its terms must be settled, and is settled, in service recipient stock is exempt from section 457A. A stock appreciation right that may be or is settled other than in service recipient stock is not exempt from section 457A, regardless of whether the stock appreciation right is a nonqualified deferred compensation plan for purposes of section 409A.

 

 

Link

http://www.irs.gov/pub/irs-drop/rr-14-18.pdf

 

 

 

 

 

 

 

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