COLI/BOLI

IRS Issues New 162(m) Rules Related to Grandfathered Benefits under Deferred Compensation Plans.

Topics: 162(m), COLI/BOLI, Congress, NQDC, Tax reform

Changes to 162(m) made by the Tax Act expand the $1 million deduction limit for covered employees at public companies. NQDC amounts accrued as of November 2, 2017 can escape these expanded deduction limits if the NQDC amounts meet certain grandfather requirements to remain covered by the pre-Tax Act 162(m) rules (“old 162(m)”). The Notice…

Recent Trends in Litigation over Director Compensation Highlight Risks and Suggest Actions to Mitigate those Risks

Topics: COLI/BOLI, Congress, NQDC, Tax reform

Decisions about levels of director compensation often do not receive the protection of the business judgment rule because directors are usually interested in decisions about their own compensation levels. Under Delaware case law, however, stockholders face significant legal barriers in challenging these director compensation decisions if the stockholders previously approved the director compensation levels. These…

In This Week’s Tax News – 18.04.09

Topics: COLI/BOLI, Congress, Tax reform

Monday, 9 April 2018 COLI/BOLI Marketplace Potential Impact of the Transfer for Value Provision in the Tax Cuts and Jobs Act of 2017 By Armstrong Robinson H.R. 1 included language modifying the Transfer for Value rules related to certain life insurance contracts subject to new reportable policy sale requirements. That language carries with it a...

In This Week’s Tax News – 17.12.03

Topics: COLI/BOLI, Congress, Estate tax, NQDC, Tax reform

By Chris Morton, Armstrong Robinson, David Hollingsworth, and Jason Martinez Sunday, 3 December 2017 Senate Passes Tax Reform Bill – House-Senate Conference Expected to Begin Senate Republicans passed their tax reform bill early Saturday morning on a 51-49 vote. Senator Bob Corker (R-TN) was the lone Republican opposing the bill. The House and Senate are…

In This Week’s Tax News – 17.11.17

Topics: COLI/BOLI, Congress, Estate tax, NQDC, Tax reform

By Chris Morton, Armstrong Robinson, and David Hollingsworth Friday, 17 November 2017 Don’t Forget Tune in Tuesday, November 21 at 11am Eastern for the next installment in our webinar series on this topic. Missed today’s webinar? Click here for the recording. Republicans continued to meet their deadlines for tax reform. However, a number of issues…

Part 2 – To Fund or Not to Fund- Non-Qualified Deferred Compensation Plans – Funding Options.

Topics: COLI/BOLI, NQDC

Non-qualified deferred compensation (“NQDC”) plans are a promise by the sponsoring employer to pay part of an executive’s compensation to the executive at a later date (e.g., upon retirement or other termination of employment). In Part 1 of this series (see WRM No. 17-41), we discussed the tax and ERISA fundamentals of the two main…

Part 1 – The Fundamentals of Non-Qualified Deferred Compensation Plans

Topics: COLI/BOLI, NQDC

Because of restrictions and limitations in the tax and ERISA rules that apply to tax-qualified retirement plans, many employers have created non-qualified deferred compensation (“NQDC”) plans to provide additional compensation and retirement benefits to key executives. There are two main types of NQDC plans: (1) defined contribution and (2) defined benefit. A general understanding of…