### Question
How does the law define nonallocation period?


### Answer
Under *26 U.S.C. § 409*, **nonallocation period** is defined as:

> the period beginning on the date of the sale of the qualified securities and ending on the later of—


(i) the date which is 10 years after the date of sale, or


(ii) the date of the plan allocation attributable to the final payment of acquisition indebtedness incurred in connection with such sale

#### Citation:
  - *26 U.S.C. § 409*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

