This is a special feature that can occur in grants of restricted stock units and performance share units. It allows the deferral of share delivery at vesting. This delays the payout of the award and thus the ordinary income tax, though not the Social Security and Medicare taxes. The election, distribution, and deferral features and procedures must follow the requirements under IRC Section 409A. The stock plan and the grant agreement must permit deferral elections. See a detailed FAQ for more information on deferring stock grants, and also see myNQDC.com, a related website on nonqualified deferred compensation.