The Top 10 Reasons Why Non-Qualified Deferred Compensation Plans Are Popular Many breathed a sigh of relief when the Tax Cuts and Jobs Act ultimately removed a provision that would have placed significant restrictions on nonqualified…
Read More Prudential/PLANSPONSOR 2018 Executive Benefit Survey
What is a 162 Executive Bonus Plan? A 162 Executive Bonus plan allows a business to provide life and/or disability income insurance to key executives using tax deductible dollars. Insurance policies are owned by the executives…
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 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.
Read More Shareholder Attempts To Add Clawback Provisions Fail
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…
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…
Read More IRS Guidance: Application Of Code Section 162(m) With Grandfathering Rules (Part 2)
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…
Read More IRS Guidance: Application Of Code Section 162(m) With Grandfathering Rules (Part 1)
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.
Read More Bankruptcy And Non-Qualified Deferred Compensation Plans
Informally funding deferred compensation programs can offer advantages to both participants and companies. The practice can help support a company’s promise to pay future benefits to plan participants while minimizing income statement volatility.
Read More Weighing The Options For Informally Funding Non-Qualified Benefits
For most employees, 401(k) plans are an effective solution to retirement needs. However, key employees and executives require more. At higher income levels, tax-advantaged savings opportunities are limited by the government.