Section of the Internal Revenue Code (IRC) that affects the taxation of
nonqualified deferred compensation, including the taxation of restricted stock units. While restricted stock, which involves an immediate transfer unvested of property at grant, is taxed under
IRC Section 83, RSUs are taxed under IRC Section 451, as they are a promise to deliver stock at a future date. For details on the different tax principles applying to RSUs and restricted stock, see the
related FAQ.