NQDC

Recreating a DB Plan, Charitable Contribution Rules, FICA Taxes + NQDC Plans, and More

Topics: 199A, Charitable giving, Defined benefit plans, IRS, NQDC, Qualified Plans, Retirement security

February 14, 2019 Assets Under Management How to Recreate A Defined Benefit Plan in a Retirement Income Portfolio Defined benefit plans are a thing of the past, but Steve Parrish explains how an individual can build a defined benefit element into his or her retirement income portfolio, and establish a floor income during retirement that…

“Top Hat” Plans — What are They and How Do You Know If You Have One

Topics: ERISA, NQDC

Nonqualified deferred compensation plans (NQDC), such as 401(k) restoration plans, other elective deferral plans, and supplemental retirement plans (SERPs), must limit their eligibility to a “top hat” group to avoid significant problems under ERISA and the Internal Revenue Code (IRC). ERISA defines this group as a “select group of management or highly compensated employees.” Department…

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 – 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

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…