Life belt or rescue ring on wooden wall. Salvation, protection

IRC Section 409A v. COVID-19

Fulcrum Partners. Deferred Compensation News

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. 

COVID-19 and nonqualified deferred compensation plans

Further Insights on COVID-19 and Nonqualified Deferred Compensation Plans

Fulcrum Partners. Deferred Compensation News

Deferred Compensation News is pleased to provide this Fulcrum Partners report, prepared and originally published by Principal Life, a member of the Principal Financial Group®. With socioeconomic and regulatory landscapes changing day by day and sometimes hour by hour, both plan providers and plan participants are faced with new and unexpected issues.

covid unforeseen 409

COVID-19 and the Unforeseen Financial Emergency Under IRC 409A

Fulcrum Partners. Deferred Compensation News

Internal Revenue Code Section §409A (IRC 409A) regulations govern the design and administration of nonqualified executive benefit plans. Nonqualified executive benefit plans have very specific rules on the form and timing of participant distributions and, generally, offer little flexibility on changing the form or timing of the distributions following the submission of the election form. One of the exceptions in the 409A regulations for altering previously submitted distribution elections is addressed under the unforeseeable emergency provisions.

rabbi trust release

Report Published on Rabbi Trusts During Times of Economic Uncertainty

Fulcrum Partners. Fulcrum Partners Media Releases

PONTE VEDRA BEACH, FL — (March 26, 2020) Fulcrum Partners, one of the nation’s largest executive benefits advisories, announces publication of “Rabbi Trust: An Important Element of a Nonqualified Executive Benefit Plan during Times of Financial Stress.” The whitepaper, which is available to view online or download as a PDF, provides an overview of nonqualified plan benefit security issues that are important to review during financial or economic turmoil, specifically looking at rabbi trusts as the primary benefit security tools available to nonqualified plan sponsors.

Phil Currie Fulcrum Partners

Fulcrum Partners Managing Director Phil Currie Presenting on Nonqualified Deferred Compensation

Fulcrum Partners Fulcrum Partners Media Releases

PONTE VEDRA BEACH, FL — (July 16, 2019) Fulcrum Partners Managing Director Phil Currie will be a featured presenter at the webinar, “Case Study Overviews,” which is the second training event in an educational series designed to equip and inform financial advisors for incorporating nonqualified deferred compensation plans as part of their client services. The training program is presented by …

The 401k Excess Contribution Solution | Offsetting the 401(k) Refund

Offsetting the 401(k) Refund with a Nonqualified Deferred Compensation Plan

Fulcrum Partners. Deferred Compensation News

Download report as a PDF The 401(k) Excess Contribution Solution To help ensure that a 401(k) plan does not favor business owners or other highly compensated employees (HCEs), plan sponsors are required to perform specific nondiscrimination tests. The Actual Deferral Percentage test (ADP) is used to help determine a 401(k) plan’s deferral limits. IRC Section 401(k)(3)(A)(ii) established the ADP test …


Nonqualified Deferred Compensation Plans From the Employer’s Perspective

Fulcrum Partners. Deferred Compensation News

Download as a PDF Question: Why do employers, as plan sponsors, offer deferred compensation plans?   of employers offer deferred compensation plans in order to create a competitive benefits package of employers want to help plan participants save for retirement beyond the limits of qualified plans of employers believe a deferred comp plan helps them retain key employees of employers …

Assessing Your Plan Administrator and Your Nonqualified Deferred Comp Plan or Rabbi Trust

Assessing Your Plan Administrator and Your Nonqualified Deferred Comp Plan or Rabbi Trust

Fulcrum Partners Deferred Compensation News

Big Changes. Inevitable Questions Earlier this week, Principal Financial Group Inc. announced that it has entered into an agreement to buy Wells Fargo & Company’s retirement plan services unit for $1.2 billion. The acquisition covers all existing Wells Fargo Institutional Retirement and Trust (IRT) business. As of December 31, 2018, the respective Wells Fargo retirement businesses had $827 billion in …