One of the primary reasons for the steady growth in the number of qualified deferred compensation plans described in Section 401 (a) of the Internal Revenue Code of 19541 is their usefulness as tax planning devices. An important tax consideration in adopting such a plan is that the taxation of plan benefits to employee-participants or their beneficiaries, provided by current employer contributions, will be deferred to some future time. Because of the rapid changes that occur in the income tax law this article will cover general tax considerations applicable to such benefits that exist presently. Consideration will be given the taxation of usual plan benefits, but of necessity the article will not be all-inclusive nor will it cover all possible tax consequences.
Lucius C. Gossick, Tax of Qualified Deferred Compensation Plan, 10 Clev.-Marshall L. Rev. 490 (1961)