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. 
May 01, 2014

Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment

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Did You Get Hammered at Tax Time? Do You Need a New Strategy for Pre-Tax Deferral? Released this month in the April issue of  The Exchange for People, a Human Resources eMagazine, is an article by Chris Nyland and Steve Broadbent, both of Fulcrum Partners LLC.  This article, Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment, looks at some of the ways current thinking is being challenged on the topic of income deferral. “Employees who once routinely deferred compensation are now rethinking those habits as they consider updates to their financial plans. Among the concerns is whether it might be better to take income today because of the uncertainty of tax increases in the future. The uncertainty was highlighted in the 2012 “fiscal cliff” negotiations in which the top Federal tax rates were increased and a number of “revenue enhancements” were added, which are nothing more than new taxes under the proverbial sheep’s clothing. This article shows how you should consider recent and future tax rate changes and investment returns when analyzing whether to participate in your company’s nonqualified deferred compensation plan (DCP).”
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May 02, 2013

Fulcrum Partners Releases Report on Deferred Income and Higher Taxes

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PONTE VEDRA BEACH, FL– (May 2, 2013) – Executive benefits consultancy Fulcrum Partners LLC announces the release of the white paper: “Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment.” Authored by Steve Broadbent (Fulcrum Partners LLC, Atlanta, GA) and Chris Nyland (Fulcrum Partners LLC, Charleston, SC), the report takes an analytic look at the common practice of deferring compensation and what that really means financially to the individual given today’s unpredictable tax environment. Presenting actual case studies, the report shows how to consider recent and future tax rate changes and investment returns when analyzing whether to participate in your employer’s nonqualified deferred compensation plan (DCP). Steve Broadbent explains, “We continue to hear concerns from deferred compensation plan participants about the potential impact of higher taxes in the future. The objective of this analysis is to demonstrate that the pre-tax deferral of income continues to provide greater results as compared to after-tax investing if taxes continue to rise in the future.” Chris Nyland adds, “The economy is beginning to recover, albeit a limited recovery. As this happens, new optimism arises in how DCP participants feel about their employers and their individual financial plans.” The full report is available from Fulcrum
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