By: Mark Stember and Todd Castleton
On November 10, 2017, the Senate released a document entitled “Description of the Chairman’s Mark of the ‘Tax Cuts and Jobs Act’” prepared by the Joint Committee on Tax summarizing the proposals expected to appear in the Senate tax reform bill scheduled for mark up today, November 13, 2017. The description provides background and summaries of the proposed tax code changes expected to appear in the legislation, although the text of the bill...Continue Reading
By: Todd Castleton
One week ago the Republicans’ Tax Bill H.R. 1, the “Tax Relief and Jobs Act,” was released. Section 3801 of that bill proposed to significantly curtail deferred compensation arrangements by replacing Internal Revenue Code section 409A with section 409B for all services performed on or after January 1, 2018. It would have also required all deferred compensation deferred before 2018 under current section 409A to be included in income no later than 2025.
On November 9,...Continue Reading
By Todd Castleton and Harrison Taylor
House Republicans this week released much-anticipated legislation to reform individual and corporate income taxation. Titled the “Tax Cuts and Jobs Act,” the legislation proposes substantial revisions to the Internal Revenue Code, including provisions that may impact qualified retirement plans as well as nonqualified deferred compensation and certain health and welfare benefits. Highlighted here are the significant proposals relating to qualified...Continue Reading
The tax bill issued yesterday contains a number of provisions that, if implemented, will result in dramatic changes to the taxation of certain compensation arrangements. Of particular concern:
- The performance-based compensation exception to the section 162(m) $1 million compensation deduction limitation would be eliminated, and the CFO would be added to the group of executives that are subject to the 162(m) limitation.
- Employer stock options would be treated as deferred compensation and...Continue Reading
Substantial new guidance has been issued on QSEHRAs, the new type of health reimbursement arrangement described in Code Section 9831(d) that is exempt from ERISA’s requirements that apply to group health plans. If an employee has minimum essential coverage (MEC), reimbursements from these accounts for medical expenses (including reimbursements for premiums for medical coverage) are excludable from income. Unfortunately, these arrangements are only available to a small employer that is not...Continue Reading