Below is a good review of the IRS final regulations to enhance DB plans, which allows participants to elect annuity payments inside of their defined benefit plan. We hope you find this information useful. Feel free to contact us if we may be of…
Leaving One State for Another, Don’t Get Stuck In Between
Each state has unique rules for establishing or terminang income tax residency. See below for more informaon about common residency guidelines and potenal obstacles. We hope you find this informaon useful. Feel free to contact us…
401(k) Hardship Distributions: IRS Eases Substantiation Requirements
While 401(k) Hardship Withdrawal rules have been eased, keep in mind that Deferred Compensation Plan rules for Hardship Withdrawals remain unchanged. See below for more information on the new 401(k) Hardship Withdrawal rules.
DOL Issues “Highly Compensated Employee” Definition in FLSA Guidance
On March 7, 2019, the United States Department of Labor (“USDOL”) issued its long-awaited proposed rule that would increase the minimum salary threshold to qualify for exemption from the overtime provisions of the Fair Labor Standards Act (“FLSA”)…
Funding & Benefit Security
Events during the past two decades have increased executives’ focus on the security of their non-qualified arrangements. This heightened awareness of benefit security comes at a time when companies, shareholders and the media are focused…
Shareholder Attempts to Add Clawback Provisions Fail
Shareholder Attempts to Add Clawback Provisions Fail In a recent trend, shareholders (primarily led by union pension funds) of large public companies have been pressuring compensation committees to add clawback provisions to executives’ contracts.
401(k) Refund – What Can Be Done?
401(k) Refund – What Can Be Done? At some point, highly compensated employees (HCEs) may find themselves in receipt of a refund check for what is determined to be “excess” 401(k) contributions. It is an unfavorable situation for both plan…
IRS Guidance: Application of Code Section 162(m) with Grandfathering Rules (Part 2)
This alert serves as part two of a two-part alert regarding changes to section 162(m) of the IRS tax code. Part two focuses on recommended steps to maintain and maximize grandfathered compensation, particularly in Non-Qualified…
IRS Guidance: Application of Code Section 162(m) with Grandfathering Rules (Part 1)
Recently, the IRS issued Notice 2018-68, providing guidance under Section 162(m) of the Internal Revenue Code, as amended by the 2017 Tax Cuts and Jobs Act (the “2017 Act”). Section 162(m) disallows the deduction of compensation paid by…
Bankruptcy and Non-Qualified Deferred Compensation Plans
The Internal Revenue Code requires that a Non-Qualified Deferred Compensation Plan (“NQDCP”) must be treated as an unsecured promise to pay future benefits such that participants can defer current income recognition.