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 1 – The Fundamentals of Non-Qualified Deferred Compensation Plans


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…

Substantial Risk of Forfeiture – What Is It and What Does It Do?


Substantial risk of forfeiture is a concept relevant to the taxation of non- cash compensation under Internal Revenue Code (“Code”) §83 and to the taxation of deferred compensation under Code §§409A and 457(f). To create a substantial risk of forfeiture, an employer must generally impose a service- or performance-based restriction on the employee’s right to…

Executive Compensation Planning: What the Future May Hold & What Can Be Done Now.


While President Trump and the Republican-controlled Congress have promised major tax reform, little is known about the specifics that may affect executive compensation and retirement planning. Republican leaders face significant obstacles as they work to enact tax reform this year, however, based upon stated goals and prior legislative proposals, many expect changes to the taxation…

What Is the Pay Ratio Rule & Why Should You Care


Although the disclosure under the pay-­ratio rule for calendar-­year reporting companies likely will not be required until the spring of 2018 when such companies file their proxy statements in respect of 2017, in light of the complexity and anticipated implications associated with the disclosure, companies are advised to begin formulating their implementation approach now.

Proposed Section 409A Regulations Published

Topics: 409A, COLI/BOLI

The IRS recently issued proposed regulations supplementing the existing regulations and guidance on the application of Code Section 409A to nonqualified deferred compensation arrangements. As a whole, the proposed regulations clarify existing rules rather than making substantive changes to Section 409A. The proposed regulations will become effective when they are published as final regulations.