A $55 million settlement after 13 years in litigation in the case of Tussey vs. ABB, illustrates the dangers of bundling qualified and non-qualified plans with the same recordkeeper. In an effort to maximize cost efficiency,…
Use Deferred Compensation Plans in Place of Salary Reductions
The COVID-19 pandemic has had profound impacts on the day to day business of most American companies. Shelter in place orders and social distancing recommendations, while necessary, also mean that customers are less frequent…
Deferral Contribution Planning
Consider the Impact of COVID-19 on Higher 401(k) Refunds The economic impact of the COVID-19 pandemic has likely reduced 401(k) contributions this year. And as a result, the ERISA required nondiscrimination testing that occurs…
Should you have a Fixed Crediting Rate option in your Deferred Compensation Plan?
With interest rates at historically low levels, and the Federal Reserve recently indicating rates will remain at these levels through 2024 in their September policy statement, plan sponsors have begun to question what effect this may have…
Implications of the Treasury Department’s Final Regulations on Reportable Policy Sales for 1035 Exchanges Made by Businesses
On October 31, the Treasury Department released its final regulations on Reportable Policy Sales (RPS). In addition to clarifying the tax implications for company-owned life insurance (“COLI”) and bank-owned life insurance (“BOLI”)…
Impact of Final Regulations on Reportable Policy Sales for COLI/BOLI Policies
Background The Tax Cuts and Jobs Act of 2017 (the “TCJA”) modified the prior-law exemptions of the Transfer for Value Rules (“TFV Rules”) to include new Reportable Policy Sale (“RPS”) requirements that apply to all transfers…
Two Commonly Asked Questions Regarding Hardship Withdrawals From Deferred Compensation Plans
The uncertainty of the coronavirus has wreaked havoc on markets, causing unprecedented volatility and financial strains to all Americans. This environment may lead to our Plan Sponsors fielding two commonly asked questions from…
Hardship Withdrawals No Longer Limit Non-Qualified Plan Deferrals
Hardship Withdrawals No Longer Limit Non-Qualified Plan Deferrals Pre-2019 Rule (Old Rule) Up until this year, before the Bipartisan Budget Act of 2018 was signed into law, a participant in a non-qualified deferred compensation plan was…
Non-Qualified Deferred Compensation Plans – Draft Carefully
The WRMarketplace is created exclusively for AALU Members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides…
How Do the New 2017 Tax Provisions Impact Executive Benefits?
INCOME TAX PROVISIONS OF THE TAX AND JOBS ACT Specifically – How do the new tax provisions impact executive benefits? On December 20, 2017, Congress enacted the most comprehensive tax reform measure since 1986.