account (within the meaning of section 408(p)). (4) Plan includes arrangements, etc The term plan includes any agreement or arrangement, including an agreement or arrangement which includes only 1 person. (5) Exception Compensation shall not be treated as deferred if the service provider receives payment of such compensation not later than 2 ½ months after the end of the taxable year of the service recipient during which the right to the payment of such compensation is no longer subject to a substantial risk of forfeiture. (6) Treatment of earnings References to deferred compensation shall be treated as including references to income (whether actual or notional) attributable to such compensation or such income. (7) Treatment of qualified stock An arrangement under which an employee may receive qualified stock (as defined in section 83(i)(2)) shall not be treated as a nonqualified deferred compensation plan with respect to such employee solely because of such employee’s election, or ability to make an election, to defer recognition of income under section 83(i). (8) Aggregation rules Except as provided by the Secretary, rules similar to the rules of subsections (b) and (c) of section 414 shall apply. (c) Treatment of equity-Based compensation (1) In general Except as provided in paragraph (7), subsection (a) shall not apply to any equity-based compensation, and such equity-based compensation shall be includible in income as provided in paragraphs (2) through (6). (2) Plan failures (A) Gross income inclusion (i) In general If at any time during a taxable year a nonqualified deferred compensation plan— (I) fails to meet the requirements of paragraphs (3), (4), and (5), or (II) is not operated in accordance with such requirements, all equity-based compensation deferred under the plan for the taxable year and all preceding taxable years shall be includible in gross income for the taxable year to the extent not subject to a substantial risk of forfeiture and not previously included in gross income. (ii) Application