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 “Leveraging Employee Benefits to Combat Labor Shortages”
September 16, 2021

Leveraging Employee Benefits to Combat Labor Shortages

highly compensated employees

Is your organization maximizing employee benefits to combat the challenges of a diminished workforce?
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May 19, 2021

Why Employers Use Nonqualified Deferred Comp Plans

highly compensated employees

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.
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Featured image for “Strategic Executive Comp Decisions, Not Kneejerk Reactions”
January 12, 2021

Strategic Executive Comp Decisions, Not Kneejerk Reactions

highly compensated employees

Your first strategic step in making executive comp decisions in 2021 starts with Fulcrum Partners.
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Featured image for “Here’s Why Employers Offer Nonqualified Deferred Comp Plans”
December 09, 2020

Here’s Why Employers Offer Nonqualified Deferred Comp Plans

highly compensated employees

Nonqualified deferred comp plans remain a powerful tool to help Highly Compensated Employees (HCEs) bridge the retirement savings gap.
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Featured image for “Do Your Company’s Highly Compensated Employees Provide Services to Your Foundation?”
April 24, 2019

Do Your Company’s Highly Compensated Employees Provide Services to Your Foundation?

highly compensated employees

As Winston & Strawn Attorney, Michael Melbinger, observes in the Executive Compensation Blog, many companies and their top executives are still crossing their fingers that revisions are forthcoming to IRS Notice 2019-09. But as time slips by, the potential problems that could be created for publicly traded and for-profit companies become increasingly more disconcerting. Read Mike’s commentary here, in entirety, as it relates to certain highly compensated employees: Warning: Public and Other For-Profit Employers Could Become Subject to New 21% Excise Tax on Tax-Exempt Organizations IRS Notice 2019-09 is the early leader for this year’s No Good Deed Goes Unpunished Award. Now that the Notice has been out for several months, the potentially serious implications for publicly traded and other for-profit companies are becoming more worrisome. Although this Notice was published in January, we have not written about it previously because we believed that revision by IRS and the Treasury Department were certain to follow. We continue to believe that revisions are inevitable, but now want to provide a warning, just in case. Section 4960, as amended by the Tax Cuts and Jobs Act of 2017, imposes a 21% excise tax on (i) the amount of compensation in excess of $1 million
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