during restricted period (i) In general If— (I) during any restricted period with respect to a single-employer defined benefit plan, assets are set aside or reserved (directly or indirectly) in a trust (or other arrangement as determined by the Secretary) or transferred to such a trust or other arrangement for purposes of paying deferred equity-based compensation of an applicable covered employee under a nonqualified deferred compensation plan of the plan sponsor or member of a controlled group which includes the plan sponsor, or (II) a nonqualified deferred compensation plan of the plan sponsor or member of a controlled group which includes the plan sponsor provides that assets will become restricted to the provision of benefits under the plan to an applicable covered employee in connection with such restricted period (or other similar financial measure determined by the Secretary) with respect to the defined benefit plan, or assets are so restricted, such assets shall, for purposes of section 83, be treated as property transferred in connection with the performance of services whether or not such assets are available to satisfy claims of general creditors. Subclause (I) shall not apply with respect to any assets which are so set aside before the restricted period with respect to the defined benefit plan. (ii) Restricted period For purposes of this subsection, the term restricted period means, with respect to any plan described in clause (i)— (I) any period during which the plan is in at-risk status (as defined in section 430(i)), (II) any period the plan sponsor is a debtor in a case under title 11, United States Code, or similar Federal or State law, and (III) the 12-month period beginning on the date which is 6 months before the termination date of the plan if, as of the termination date, the plan is not sufficient for benefit liabilities (within the meaning of section 4041 of the Employee Retirement Income Security Act of 1974). (iii) Special rule for payment of taxes on deferred equity-based compensation