Posts Tagged: executive compensation

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.

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