Posts Categorized: Executive Compensation

IRS Eliminates One of the Section 83(b) Filing Requirements

in Executive Compensation, Tax Issues

If an individual makes a Section 83(b) election to include in income the value of unvested property (such as restricted stock) that is transferred in connection with the performance of services, the individual must file the Section 83(b) election statement with the IRS no later than 30 days after the date the property is transferred.  However, under final regulations recently issued by the IRS, the individual no longer has to file a copy of the Section 83(b) election statement with his or her income tax return for the year of transfer.  These final regulations apply to property transferred on or… Continue Reading

IRS Issues Proposed Regulations under Sections 457(f) and 409A

in Executive Compensation, Section 409A, Tax Exempt Entities, Tax Issues

On June 22, 2016, the IRS issued long-awaited proposed regulations on Section 457(f) plans, as well as additional proposed regulations under Section 409A.  As expected, the Section 457(f) rules have many similarities to the existing Section 409A rules; however, there are some welcome differences including the possibility of a noncompete agreement creating a substantial risk of forfeiture for purposes of Section 457(f).  While the proposed rules under Section 409A include several welcome clarifications, changes to the proposed income inclusion regulations narrow the ability to make changes to unvested benefits.

IRS Proposes Change to Section 83(b) Election Requirements

in Executive Compensation, Tax Issues

The IRS has issued proposed regulations to eliminate the requirement that a taxpayer include a copy of a Code Section 83(b) election with his or her income tax return for the year of the election. This was done to facilitate e-filings of tax returns that were previously unavailable to taxpayers who made Section 83(b) elections because of the requirement to submit a copy of the election with the return. A taxpayer will still be required to mail a copy of the Section 83(b) election to the IRS within 30 days after making the election, as well as retain a copy… Continue Reading

Electronic Filing of Top Hat Plan Statements

in Executive Compensation

“Top hat” plans are unfunded pension plans for a select group of management or highly compensated employees.  Top hat plans are exempt from certain ERISA reporting and disclosure requirements if the plan administrator timely files a one-time statement with the DOL.  The DOL has issued proposed regulations that will require these top hat plan statements to be filed electronically.  The requirement will become effective 120 days after publication of the final regulations in the Federal Regulations.  Before then, plan administrators can choose to voluntarily file the top hat plan statement using an electronic system on the website of the DOL’s Employee Benefits… Continue Reading