Page:United States Statutes at Large Volume 124.djvu/1320

 124 STAT. 1294 PUBLIC LAW 111–192—JUNE 25, 2010 indirectly) in a trust (or other arrangement as deter- mined by the Secretary), or transferred to such a trust or other arrangement, by a plan sponsor for purposes of paying deferred compensation of an employee under a nonqualified deferred compensation plan (as defined in section 409A) of the plan sponsor, then, for purposes of clause (i), the amount of such assets shall be treated as remuneration of the employee includible in income for the calendar year unless such amount is otherwise includible in income for such year. An amount to which the preceding sentence applies shall not be taken into account under this paragraph for any subsequent cal- endar year. ‘‘(iii) ONLY REMUNERATION FOR CERTAIN POST-2009 SERVICES COUNTED.—Remuneration shall be taken into account under clause (i) only to the extent attributable to services performed by the employee for the plan sponsor after February 28, 2010. ‘‘(iv) EXCEPTION FOR CERTAIN EQUITY PAYMENTS.— ‘‘(I) IN GENERAL.—There shall not be taken into account under clause (i)(I) any amount includ- ible in income with respect to the granting after February 28, 2010, of service recipient stock (within the meaning of section 409A) that, upon such grant, is subject to a substantial risk of for- feiture (as defined under section 83(c)(1)) for at least 5 years from the date of such grant. ‘‘(II) SECRETARIAL AUTHORITY.—The Secretary may by regulation provide for the application of this clause in the case of a person other than a corporation. ‘‘(v) OTHER EXCEPTIONS.—The following amounts includible in income shall not be taken into account under clause (i)(I): ‘‘(I) COMMISSIONS.—Any remuneration payable on a commission basis solely on account of income directly generated by the individual performance of the individual to whom such remuneration is payable. ‘‘(II) CERTAIN PAYMENTS UNDER EXISTING CON- TRACTS.—Any remuneration consisting of non- qualified deferred compensation, restricted stock, stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid. ‘‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED AS EMPLOYEE.—The term ‘employee’ includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) for the taxable year ending during such calendar year, and the term ‘compensation’ shall include earned income of such individual with respect to such self- employment. ‘‘(vii) INDEXING OF AMOUNT.—In the case of any calendar year beginning after 2010, the dollar amount Effective date. Applicability.