Tax-Savings Solutions NQDC Fulcrum Partners

Important Strategic Tax-Saving Solutions and the Impact of SECURE Act on NQDC Plan

February 20, 2020

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In case you were enjoying the long President’s Day weekend and missed it, here’s the report Fulcrum Partners released last week: “Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elections.”

The white paper, by Bruce Brownell and the team at Fulcrum Partners, is available to view or download as a PDF.

As the report explains, the SECURE Act of 2019, which was signed into law by President Trump last December, was a bipartisan initiative to update and expand aspects of defined contribution (DC) retirement plans, with the intention of making them more accessible to employees and at the same time, less complex for employers.

Much has been written about how the SECURE Act effects 401(k) plans. The Fulcrum Partners report, however, looks instead at how the new law may impact nonqualified deferred compensation (NQDC) plans and retirement distribution elections.

Plan Design Can Support Tax-Saving Strategies

Tax Code Section 409A (implemented in 2005) requires that NQDC plan participants elect timing and form of their retirement payout. It does not, however, require that the payout be taken as a lump sum payment, even though many plans default to this timing.

The Fulcrum Partners Report explores some of the options available to NQDC plan participants. Many executives may be looking toward retirement, realizing that their plan, as currently structured, provides for a lump sum distribution at a time when they already may be in the highest marginal tax bracket.Tax-Saving Report Fulcrum Partners NQDC

Fulcrum Partners encourages plan sponsors and participants to download and read the report. As Bruce Brownell explains, “If you’ve seen one plan… you’ve seen one plan.”

In other words, every NQDC plan is unique. Only a thoughtfully and creatively designed plan can help ensure that neither executives nor plan sponsors find themselves boxed in or lacking options.

Read Now: Impact of the SECURE Act 2019 on NQDC Plans and Retirement Distribution Elections/ A Fulcrum Partners Executive Benefits Advisory Report

Contact: The Executive Benefits Advisory Professionals at Fulcrum Partners

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Related posts: Fulcrum Partners Releases Report on Impact of SECURE Act on NQDC Plans and Important Strategic Tax-Saving Solutions

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through Lion Street Advisors, LLC (LSA) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI and LSF/LSA are non-affiliated entities and separate entities from OneDigital and Fulcrum Partners.

Unless otherwise noted, VAI/VSI, LSF/LSA are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.

Lion Street Advisors // Lion Street Financial

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