Date of Occurrence

(1) Generally, an excess benefit transaction occurs when the disqualified person

receives the economic benefit from the ATEO for federal income tax purposes. See Treas. Reg. 53.4958-1(e)(1).

(2) Series of Payments - When a single contractual arrangement provides for a

series of compensation payments or other payments to (or for the use of) a disqualified person over the course of the disqualified person’s taxable year (or part of a taxable year), any excess benefit transaction regarding these payments is deemed to occur on the last day of the disqualified person’s taxable year. However, if a series of payments continue for only part of the taxable year, the excess benefit transaction is deemed to occur on the date of the last payment in the series. See Treas. Reg. 53.4958-1(e)(1).

(3) Special Rules - See Treas. Reg. 53.4958-1(e)(2).

a. In the case of benefits provided pursuant to a qualified pension, profit sharing, or stock bonus plan, the transaction occurs on the date the benefit is vested.

b. In the case of the transfer of property subject to a substantial risk of

forfeiture, or in the case of rights to future compensation or property (including benefits under a nonqualified deferred compensation plan), the excess benefit transaction occurs when the property, or the rights to future compensation or property, isn’t subject to a substantial risk of forfeiture.

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c. However, where the disqualified person elects to include an amount in gross

income in the taxable year of transfer under Section 83(b), the rule under Treas. Reg. 53.4958-1(e)(1) applies to the property.

d. Any excess benefit transaction involving benefits under a deferred

compensation plan, which vest during any taxable year of the disqualified person, is deemed to occur on the last day of the disqualified person’s taxable year.