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.
For public companies, the time to update executive compensation practices is now: Final regulations issued under IRC Section 162(m) and ARPA further expands class of covered employees.
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.
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.
A nonqualified deferred compensation plan (NQDC) is an unsecured promise made by an employer to pay compensation to key employees at a prespecified time in the future or upon the occurrence of a predetermined event. An NQDC plan is also one of the most powerful tools available to employers for recruiting, retaining, and rewarding key employees.
Fulcrum Partners, one of the largest independent executive benefits consultancies in the U.S., announces the availability of Deferred Compensation News on a no-cost, subscription basis. Previously offered only as an online publication, Deferred Compensation News is now available for direct email delivery.
Since the coronavirus pandemic first began to reinvent life in the U.S., we’ve shared numerous updates directed to the topic of IRC Section 409A v. COVID-19.
Today, courtesy of our friends at Porter Wright, the Deferred Compensation blog addresses questions that employers first raised in March, regarding ways to get money out of their nonqualified plans to participants who may have suffered pay cuts or furloughs. This post also addresses questions regarding equity-based and incentive compensation. As you will see, good intentions could lead to serious consequences under Internal Revenue Code Section 409A.
The atypical circumstances of recent months have created new situations most organizations have not previously faced. Every employer needs a clear understanding of which workforce reduction circumstances could constitute a “separation of service” and thereby trigger payment of benefits for plan participants covered by a nonqualified deferred compensation agreement (NQDC).
PONTE VEDRA BEACH, FL — (May 6, 2019) Fulcrum Partners, one of the nation’s largest executive benefits advisories has released a report examining how companies may be unintentionally shortchanging the key executives they rely on most. The report, titled, “The Benefits Gap: How it Happens and How to Fix It” is available for download on the Fulcrum Partners website at www.fulcrumpartnersllc.com.
The Coronavirus Economic Stabilization Act (CESA) was established to provide loans and loan guarantees for businesses to improve business liquidity resultant from the COVID-19 pandemic. Unlike the widely publicized Payment Protection Program (PPP), CESA Act loans do not include loan forgiveness. They do include substantial penalties, however, if terms of the loan agreement are breeched.