MBS Financial’s 7th survey of the nonqualified deferred compensation plan market is the most comprehensive survey done of the NQDCP marketplace – encompassing over 12,000 plans administered by the 20 largest NQDCP recordkeepers….
Moving Out of State? Don’t Forget about the Source Tax
One well known, yet unexpected result of the COVID-19 pandemic was the mass exodus of individuals out of city centers. For many, that exodus extended to moving out of state, particularly for those seeking to move from high to low income tax states.
2022 MBS NQDCP Recordkeeper Survey
Our 6th survey of nonqualified deferred compensation plan information demonstrates the continued growth of the industry. Data was compiled from 11 of the largest deferral recordkeepers (including two recent consolidations) with $186 billion in liabilities, 11,657 plans and 702,000 participants.
How REITs Can Hedge an Employee Benefit
Informally funding a DCP without Triggering Distribution Requirements
In order for Real Estate Investment Trusts (“REITS”) to maintain their designated tax treatment status, they must meet the annual REIT testing requirements. REITS are required to distribute at least 90% of taxable income in the form of dividend payments to their shareholders. Income realized through the growth of mutual funds – even to pay an employee benefit – must be included in the taxable income calculation, causing significant shortfalls when plan balances rise.
How to Battle the Great Resignation with Deferred Compensation Plans
Executive Summary
This article explores how a company can use a deferred compensation plan (“DCP”) as a tool to overcome the executive recruitment and retention challenges produced by “The Great Resignation”.
Are Deferred Compensation Plans (DCPs) an Executive Perk?
No, DCPs restore lost savings opportunities and fit in an egalitarian culture.
Many companies say yes. Here are the reasons why:
Issue: Highly compensated employees (HCEs) are in fact discriminated against by 401(k) contribution limits and testing. In 2022, an HCE is defined by the IRS as having total compensation of $135k or more (IRC Section 415).
Nonqualified Deferred Compensation Plan (DCP aka 409A) Participant User’s Guide
For most companies, preparing a request for proposals for third-party administrators (TPAs) of nonqualiNed retirement plans is a relatively infrequent occurrence, compared with doing so when seeking TPAs for other types of beneNt plans. For that reason, companies may not follow some best practices for creating such RFPs.
2015 – How to Pick a TPA for a Non-Qualified Plan 7 Tips
For most companies, preparing a request for proposals for third-party administrators (TPAs) of nonqualiNed retirement plans is a relatively infrequent occurrence, compared with doing so when seeking TPAs for other types of beneNt plans. For that reason, companies may not follow some best practices for creating such RFPs.
Retirement Savings Crisis in the United States
The retirement savings gap in the United States is nothing new – for at least the last decade experts have warned that savings rates are down. Exacerbating the issue is the pandemic of 2020.
IRC 162(m) | Executive Pay Limits Included in Covid Stimulus Package
The American Rescue Plan Act of 2021 (commonly referred to as the $1.9 trillion coronavirus aid package) includes a provision that will double the number of the highest-paid executives whose compensation in excess of $1 million…