124 STAT. 1287 PUBLIC LAW 111–192—JUNE 25, 2010 ‘‘(IV) ORDERING RULES.—For purposes of applying subclause (II), installment acceleration amounts for the plan year (determined without regard to any carryover under this clause) shall be applied first against the limitation under clause (ii) and then carryovers to such plan year shall be applied against such limitation on a first-in, first-out basis. ‘‘(D) EXCESS EMPLOYEE COMPENSATION.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘excess employee com- pensation’ means, with respect to any employee for any plan year, the excess (if any) of— ‘‘(I) the aggregate amount includible in income under chapter 1 of the Internal Revenue Code of 1986 for remuneration during the calendar year in which such plan year begins for services per- formed by the employee for the plan sponsor (whether or not performed during such calendar year), over ‘‘(II) $1,000,000. ‘‘(ii) AMOUNTS SET ASIDE FOR NONQUALIFIED DEFERRED COMPENSATION.—If during any calendar year assets are set aside or reserved (directly or indirectly) in a trust (or other arrangement as deter- mined by the Secretary of the Treasury), 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 such Code) 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 pre- ceding sentence applies shall not be taken into account under this paragraph for any subsequent calendar 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 of the Internal Revenue Code of 1986) that, upon such grant, is subject to a substantial risk of forfeiture (as defined under section 83(c)(1) of such Code) for at least 5 years from the date of such grant. ‘‘(II) SECRETARIAL AUTHORITY.—The Secretary of the Treasury may by regulation provide for the application of this clause in the case of a person other than a corporation. Definition.
