plan participant eligibility

NQDC Plans and Plan Participant Eligibility

Fulcrum Partners Deferred Compensation News, Fulcrum Partners News

One of the first questions organizations explore when they implement or update a nonqualified deferred compensation plan (NQDC) is who is eligible to participate in the plan. Data from the Newport/PLANSPONSOR Executive Benefits Survey, 2020 edition, shows that of the 282 corporate respondents to the Survey, the greatest percentage of companies set their threshold for NQDC Plan participation at $150,000 …

NQDC report

Further Insights on the NQDC Guide

Fulcrum Partners Deferred Compensation News, Fulcrum Partners News

Following up on our July blog post, “Updates on the Nonqualified Deferred Compensation Audit Technique Guide,” we are pleased to share with you these further insights from Attorneys Greg Daugherty, Dave Tumen and Rich Helmreich of PorterWright. They raise the interesting question of whether the recent update of the NQDC Guide foreshadows the coming of other critical changes in executive compensation enforcement.

Unfunded NQDC Plans

Understanding Funded vs. Unfunded NQDC Plans

Fulcrum Partners Deferred Compensation News, Fulcrum Partners News

The recent IRS publication, Nonqualified Deferred Compensation Audit Technique Guide was created to help IRS examiners during audits. As a result, it also becomes a helpful resource for organizations seeking to ensure their compliance with 409A and other tax code regulations that may impact deferred compensation. The following excerpt from the document provides information on distinctions and requisites of funded vs. unfunded NQDC plans.

employee financial stress

Employee Financial Stress Takes a Toll on the Workplace

Fulcrum Partners Human Resources, Fulcrum Partners News

Employee financial stress isn’t something that workers can compartmentalize or think about only in their non-working hours. In fact, fifty percent of American employees surveyed say they spend three or more hours of their time at work each week dealing with personal financial issues with twenty percent of that group spending as much as five hours weekly.

nonqual deferred compensation

It’s One of the Most Talked-About Nonqual Deferred Compensation Agreements in Sports

Fulcrum Partners Fulcrum Partners News

It’s July 1, and former Major League Baseball player, Bobby Bonilla, just banked another million or so of the estimated $29 million he draws from his extremely well-designed nonqual deferred compensation agreement with the New York Mets. Bobby Bonilla had a sixteen-year run in professional baseball. After helping the Pittsburgh Pirates take National League East Division titles in 1991 and 1992, Bonilla was acquired by the New York Mets, signing a five-year, 29-million-dollar contract. At the time, it made Bonilla the highest paid player in the National League.

Required Minimum Distributions

Resuming RMDs, Required Minimum Distributions from Retirement Savings Plans

Fulcrum Partners Fulcrum Partners News

RMDs, which are required minimum distributions, mandated by the IRS to be taken from traditional IRAs, rollover IRAs, SIMPLE IRAs, SEP IRAs, most Keoghs, and most 401(k) and 403(b) plans, were waived in 2020. But as life returns to the “new normal,” RMDs are back. While the March 2020 passage of the CARES Act (Coronavirus Aid Relief and Economic Security) temporarily waived the required minimum distributions for all types of retirement accounts, included inherited IRA plans, the waiver expired in December of 2020.