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. 
Featured image for “Celebrating the Birthday of IRC Section 409A”
October 22, 2021

Celebrating the Birthday of IRC Section 409A

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If IRC Section 409A had an official day on the calendar it would be every October 22nd.
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July 16, 2021

Understanding Funded vs. Unfunded NQDC Plans

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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.
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Featured image for “IRC Section 162(m): Time to Update Executive Compensation Practices Now”
March 18, 2021

IRC Section 162(m): Time to Update Executive Compensation Practices Now

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For public companies, the time to update executive compensation practices is now: Final regulations issued under IRC Section 162(m) and ARPA further expands class of covered employees.
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Featured image for “Rabbi Trust Put to the Test: Ruby Tuesday”
January 04, 2021

Rabbi Trust Put to the Test: Ruby Tuesday

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If you are trusting a Rabbi Trust to protect your retirement savings, then you might have been a little taken aback last month if you read the headline, “Ruby Tuesday Tells Court (And Retirees): ‘Pension Funds Are Ours.” In his article published in entirety below, Attorney Mike Melbinger does (as always) a thorough job breaking down the sequence of events impacting the Ruby Tuesday nonqualified plan participants.
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Featured image for “Section 409A Meets 162(m) and Some NQDC Plans May Need to be Amended by December 31”
December 11, 2020

Section 409A Meets 162(m) and Some NQDC Plans May Need to be Amended by December 31

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Thank you, Mike Melbinger, for the following in-depth update on a problem no one apparently saw coming. We’ve enclosed below the full text of Mike’s article published on December 2, 2020: “Section 409A Meets 162(m) and Some Deferred Compensation Plans and Agreements May Need to be Amended by December 31,” followed by his additional postscript article published shortly thereafter.
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Featured image for “What is Nonqualified Deferred Compensation and Why Do Companies Use It?”
August 07, 2020

What is Nonqualified Deferred Compensation and Why Do Companies Use It?

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A nonqualified deferred compensation plan (NQDC) is an unsecured promise made by an employer to pay compensation to key employees at a prespecified time in the future or upon the occurrence of a predetermined event. An NQDC plan is also one of the most powerful tools available to employers for recruiting, retaining, and rewarding key employees.
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July 09, 2020

Deferred Compensation News Now Available by Email Subscription

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Fulcrum Partners, one of the largest independent executive benefits consultancies in the U.S., announces the availability of Deferred Compensation News on a no-cost, subscription basis. Previously offered only as an online publication, Deferred Compensation News is now available for direct email delivery.
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June 25, 2020

IRC Section 409A v. COVID-19

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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. 
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June 03, 2020

Defining “Separation from Service” under Section 409A

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The atypical circumstances of recent months have created new situations most organizations have not previously faced. Every employer needs a clear understanding of which workforce reduction circumstances could constitute a “separation of service” and thereby trigger payment of benefits for plan participants covered by a nonqualified deferred compensation agreement (NQDC).
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Featured image for “Shortchanging Key Executives: New Report by Fulcrum Partners”
May 06, 2020

Shortchanging Key Executives: New Report by Fulcrum Partners

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PONTE VEDRA BEACH, FL — (May 6, 2019) Fulcrum Partners, one of the nation’s largest executive benefits advisories has released a report examining how companies may be unintentionally shortchanging the key executives they rely on most. The report, titled, “The Benefits Gap: How it Happens and How to Fix It” is available for download on the  Fulcrum Partners website at  www.fulcrumpartnersllc.com.
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