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.

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.

june benefits deadlines

June Benefits Deadlines

Fulcrum Partners Fulcrum Partners News, Deferred Compensation News

Just when you needed a window for scheduling some time off, June rolls in with a shorter than usual checklist of health and retirement benefits deadlines to meet. Thank you, as always, to our friends at IslerDare PC for providing us timely reminders and permitting us to share them with readers of Deferred Compensation News.

Why Employers Use Nonqualified Deferred Comp

Why Employers Use Nonqualified Deferred Comp Plans

Fulcrum Partners Deferred Compensation News, Executive Benefits News

As the federal income tax structure is being re-tooled yet again, employers are evaluating the use of nonqualified plans as a strategy for positioning the organization’s executives to save more effectively for retirement. Why employers use nonqualified deferred comp plans includes benefits both for the organization and for its executives.

Gold pocket watch and hourglass

Retaining Key Talent When There’s a Rush to Retire

Fulcrum Partners Fulcrum Partners News

While some Americans are struggling to get re-established in their jobs or find new employment post COVID-19, others are in a “rush to retire”. The global pandemic impacted everyone in similar ways, and each of us differently. With a heightened sense of “life is short,” some executives who are financially positioned to retire, are choosing to opt out of the workplace years ahead of their original planned retirement date.

Social Security COLA 2021 Forecast and Facts

Social Security COLA 2021 Forecast and Facts

Fulcrum Partners Executive Benefits News, Human Resources

If there is a Social Security COLA 2021, it is likely to be modest, at best. At some point, between now and the election, the Social Security Administration will publish its annual announcement regarding any Cost of Living Adjustment (COLA) for next year. Fox Business quoted The Senior Citizens League as saying the Social Security cost of living adjustment for …

Your Retirement Plan & Studies in Human Behavior

#FridayReads: Human Behavior Studies & Your Retirement Plan

Fulcrum Partners Executive Benefits News

Some of our updates at Deferred Compensation News are so popular, we just have to share them one more time… From our friends at Strategic Retirement Partners (SRP) Plan Sponsor Decisions: How Many Investment Options Should You Offer? Often a plan sponsor struggles with deciding how many investment options to offer in their retirement plans. While people generally like to have …

Big Questions Remain about Your Retirement Security and Tax Reform

Your Retirement is Not Yet Safe from Tax Reform

Fulcrum Partners Executive Benefits News

Big Questions Remain about Your Retirement Security and Tax Reform Millions of working or recently retired Americans who have chosen to defer income for their retirement could take a serious hit to their financial security from the proposed tax reform bill, known as the Tax Cut and Jobs Act. As initially presented, proposed tax changes would have dismantled nonqualified deferred …