The IRS & Treasury Dept. have published FINALIZED executive comp IRC Sec. 162(m) guidelines. Here’s what’s changing…
Rabbi Trust Put to the Test: Ruby Tuesday
If you are trusting a Rabbi Trust to protect your retirement savings, then you might have been a little taken aback last month if you read the headline, “Ruby Tuesday Tells Court (And Retirees): ‘Pension Funds Are Ours.” In his article published in entirety below, Attorney Mike Melbinger does (as always) a thorough job breaking down the sequence of events impacting the Ruby Tuesday nonqualified plan participants.
What is a Long Term Incentive Plan and How Does it Work?
A long term incentive plan (LTIP) is a deferred compensation strategy that helps employers retain valued talent by rewarding employees for meeting specific performance goals. The goals, determined by the company as key to the organization’s success, may or may not be tied to the price of company stock shares or the company’s value.
Section 409A Meets 162(m) and Some NQDC Plans May Need to be Amended by December 31
Thank you, Mike Melbinger, for the following in-depth update on a problem no one apparently saw coming. We’ve enclosed below the full text of Mike’s article published on December 2, 2020: “Section 409A Meets 162(m) and Some Deferred Compensation Plans and Agreements May Need to be Amended by December 31,” followed by his additional postscript article published shortly thereafter.
Here’s Why Employers Offer Nonqualified Deferred Comp Plans
Nonqualified deferred comp plans remain a powerful tool to help Highly Compensated Employees (HCEs) bridge the retirement savings gap.
Divorce and the Nonqualified Deferred Compensation Plan
Divorce and the nonqualified deferred compensation plan (NQDC) can be an issue that is challenging to navigate. Obviously, the plan participant who is in the thick of it is dealing with demands on time, money, and emotions. But the plan sponsor can also have a role that calls for much more than nodding their heads sympathetically and saying, “That must be very difficult for you.”
Short- and Long-Term Incentive Plan Targets and the Extraordinary Circumstances Facing Some Companies
Companies have changed and continue to change both short- and long-term incentive plan targets in response to a global pandemic and social & political unrest.
IRS Announces Retirement Plan Contribution Limits for 2021
The IRS has published benefit and retirement plan contribution limits for 2021. Notice 2020-79 defines the updated dollar limitations for tax qualified benefit and defined contribution plans. Chart
Executive Compensation Adjustments Resulting from COVID-19 Impact
Institutional Shareholder Services (ISS) has released the results of its annual global benchmark policy survey, which included executive compensation adjustments made as a result of the COVID-19 impact on the workplace, the economy, and life in general.
The Use of Tax Form 1099-NEC vs. Form 1099-Misc
Thanks Attorney Mike Melbinger for providing us this update on the new Form 1099-NEC reporting for non-employee compensation, including directors fees, and reporting on the existing Form 1099-MISC for excess golden parachute payments and NQDC amounts that fail to satisfy IRS Code 409A. …And for guidance on 409A-compliant NQDC options, talk to the team at Fulcrum Partners. New IRS Form …
