Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. Click here to read all recent articles related to the impact of the COVID-19 Pandemic.
May 15, 2015

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

409 Audits

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 failures in year of vesting will not shield income inclusion under 409A. In this blog update regarding 409A correction, Partner Joshua Miller, (Tax Department, Employee Benefits, Executive Compensation & ERISA Litigation Tax) pointed out, …more interesting, however, is that the Chief Counsel Memorandum guidance does not preclude correction of noncompliant nonqualified deferred compensation in a taxable year prior to the taxable year in which the compensation vests.” Miller’s article continues, explaining, “Under the 2008 proposed income inclusion rules, Section 409A income inclusion does not appear to be required for the year that nonqualified deferred compensation ceases to be subject to a substantial risk of forfeiture (or any later years) to the extent that the applicable plan is amended to comply with Section 409A prior to the taxable year in which the compensation vests.  By not providing any indications to
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May 06, 2014

Series of Limited Scope 409A Audits Underway, from Groom Law Group

409 Audits

Series of Limited Scope 409A Audits Underway Released May 6, 2014, by Groom Law Group is the following update on 409A audits being launched by the IRS. “The IRS has launched an audit initiative aimed at compliance with the rules for nonqualified deferred compensation plans under Code section 409A. A series of audits of a “limited scope” are underway. The IRS will assess what further steps, if any, to take after the results of these audits are in. While IRS agents have sometimes raised section 409A issues on audits, this appears to be the first systematic IRS initiative to review compliance with the complex regulatory scheme under Code section 409A. We outline below some actions that employers may consider to prepare for a potential audit on section 409A issues.” You can read the full article, including advice regarding actions that employers may consider when preparing for a potential audit on section 409A issues. From Groom Law Group by following this link: Series of Limited Scope 409A Audits Underway.
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