FULCRUM WHITE PAPER 409A and 457

Substantial Risk of Forfeiture: IRC 409A and 457

Fulcrum Partners Executive Benefits News, Fulcrum Partners News

Summary: Substantial Risk of Forfeiture, IRC 409A and 457.  After the U.S. Treasury announced changes and modifications to Sections 409A and 457 of the Internal Revenue Code this past June, it also initiated a standard period during which comments could be filed regarded the proposed changes. The deadline for submitting comments to the IRS, regarding modifications to Sections 409A and 457, closed on September 20, …

nonqualified-deferred-compensation-plan

Taxes at the Optimal Time. Your Need for a Nonqualified Deferred Compensation Plan

Fulcrum Partners Executive Benefits News

Taxes … at the Optimal Time YOUR NEED FOR A NONQUALIFIED DEFERRED COMPENSATION PLAN A nonqualified deferred compensation plan, NQDC, can provide you flexibility and control in planning when you receive compensation payouts. Income taxes on the payments received are not paid until the year you receive your money. By choosing to defer distributions while you are working (and your tax rate is potentially higher), you can …

Reward Retain Key Talent Fulcrum Partners

Recruit. Retain. Reward … Retire.

Fulcrum Partners Executive Benefits News

Recruit. Retain. Reward … Retire. NQDC plans can provide employers critical leverage to recruit, retain, reward through to retirement, the key talent that enables the organization to achieve its goals, maintain stability, and satisfy board members and stakeholders. Inspire/influence the behavior of key performers by customizing contribution and vesting schedules to use as performance rewards for executives. A company’s NQDC plans …

NQDC platform is ideally suited for claw back arrangements

SEC Approves Request for Vote Proposed by BoA Shareholder

Fulcrum Partners Executive Benefits News

SEC Approves Request for Vote Proposed by BoA Shareholder At Fulcrum Partners LLC, we’ve long thought that the nonqualified deferred compensation platform is ideally suited for claw back arrangements.  See how Bank of America is taking it to a new level. An article written by Deon Roberts and published by The Charlotte Observer (February-10-2016) provides updates and insights on a request …

Nonqualified Deferred Compensation Plans: Don’t Ignore All of the Other Rules

Fulcrum Partners Fulcrum Partners News

In a blog post  released this past Monday and authored  by Michael S. Melbinger of Winston & Strawn LLP, Melbinger takes a closer look at the recently released IRS Audit Technique Guide for Nonqualified Deferred Compensation Plans.  Noting that the headline about the release “looked promising,” and that this is the first IRS update since 2005, Melbinger said, “The new Audit Technique Guide (ATG) …

Nonqualified Deferred Compensation Section 409A Compliance

Fulcrum Partners Executive Benefits News, Fulcrum Partners News

  (June 5, 2015) Ponte Vedra Beach, Florida  Nonqualified Deferred Compensation Section 409A Compliance Executive benefits consulting firm,  Fulcrum Partners LLC, is pleased to distribute this AALU Washington Report to its clients and friends.   This continuing series of articles is intended to provide deep insight into trends, events, and issues that impact the design and operation of nonqualified executive benefit …

409A Correction: IRS Chief Counsel Memorandum clarifies that correction of Section 409A failures …

Fulcrum Partners Executive Benefits News

409A Correction: IRS Chief Counsel Memorandum clarifies that correction of Section 409A failures in year of vesting will not shield income inclusion under 409A Following up on a topic we blogged about recently, (see blog post “409A Corrections Clarified,” from May 6)  is this update from Poskauer’s ERISA Practice Center Blog, titled: IRS Chief Counsel Memorandum clarifies that correction of Section …

409A Correction for Unvested Amounts Clarified

Fulcrum Partners Executive Benefits News

The National Law Review has published a short article by Covington Law Firm Partner, Robert Newman, titled, “409A Correction for Unvested Amounts Clarified.” The article reviews a recently released chief counsel advice memorandum intended to clarify the mechanism for correcting 409A violations. As the article points out, the discovery of a 409A violation generally spurs the search for ways to correct the problem. …

Nonqualified Deferred Compensation Plan Participants

What Does Participant Really Mean when it comes to Nonqualified Deferred Compensation Plan?

Fulcrum Partners Executive Benefits News

From the Employee Benefits Law Report, an article by Greg Daugherty of Porter Wright Morris & Arthur LLP, looks at the scope and definition of who is a “participant” in a nonqualified deferred compensation plan. Daugherty points out that although companies have frequently considered the word participant to only include participants who are current employees, the courts may not always look at …

NQDC Plans and Employer Liability in Cases of Adverse Tax Consequence

Fulcrum Partners Executive Benefits News

McCarter & English, LLP, has authored an insightful look at employer responsibility in administering Nonqualified Deferred Compensation Plans (NQDC Plans), and the potential liability a company has when Plan participants face adverse tax consequences because of the company’s actions (or failure to take action). We’ve included below the full text of their article that discusses rulings by a federal district court in the case of Davidson …