TITLE

Nonqualified Deferred Compensation Plans: Practical and Tax Considerations

AUTHOR(S)
Taccino, Kenn B.
PUB. DATE
March 1994
SOURCE
Benefits Quarterly;1994 First Quarter, Vol. 10 Issue 1, p30
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
One of the most effective tools available to employers and executives for compensation and retirement planning in the U.S. are nonqualified deferred compensation plans. A nonqualified plan is an employer-sponsored retirement program that discriminates in favor of executives and consequently is ineligible for the special tax advantages available to a qualified pension and profit-sharing plan. This article examines the viability of the non-qualified plan as an alternative to qualified plan. The author explores several business needs that nonqualified plans satisfy and the variety of plans that can be designed to meet these needs. The author also looks at the tax implications associated with plan funding and how to avoid unwanted tax consequences through the use of a rabbi trust.
ACCESSION #
13261935

 

Related Articles

  • Live happily ever after. Craig, Matthew // Employee Benefits;May2010, Special section p11 

    The article offers information on contract-based defined contribution (DC) pension scheme in Great Britain. It states that it helps retiring employes decide where to invest and how to convert DC funds into pension. It also mentions that its providers are responsible for communicating with...

  • RETIREMENT PLANNING: NEW FACULTY ORIENTATION. Dukes, William P. // Review of Business & Finance Studies;2013, Vol. 4 Issue 1, p79 

    Most Colleges/Universities require all full-time employs to be a member of a Retirement System, whether the choice is "defined benefit" or "defined contribution". When the distinction is made clear, probably 85 to 90 percent of employees select the "defined contribution" approach over the more...

  • How Safe Is Your ADP/ACP Safe Harbor? Schwallie, Daniel P.; Steinberg, Allen // Benefits Quarterly;2013 Fourth Quarter, Vol. 29 Issue 4, p35 

    Plan sponsors are interested in actual deferral percentage (ADP) and actual contribution percentage (ACP) safe harbor designs primarily because they can eliminate the need for ADP and/or ACP testing and ensure that highly compensated employees can maximize deferrals under the plan. There are...

  • Measure Twice (at Least). Keeler, Quinn; O'Keefe, Brian // Plan Adviser;Jun2014, p13 

    The article reports on the results of the "Plansponsor 2013 Defined Contribution and 2014 Recordkeeping" surveys. Topics discussed include percentage of pension plans that evaluate their success based on overall employee participation rate, improvement in the investment success of plans that...

  • More separate accounts in New York State's plans. Feinberg, Phyllis // Pensions & Investments;2/21/2005, Vol. 33 Issue 4, p4 

    The article reports that Board members at the$ 6.5 billion New York State Deferred Compensation Plan are looking at broadening the plan's use of separate accounts and/or indexed mutual funds. Julian Regan, executive director of the Albany-based fund, said many of his peers at other large defined...

  • Study reveals uptick in retirement-plan participation: Unstable economy, automatic enrollment boost pool of contributors. Tampone, Kevin // Business Journal (Central New York);10/28/2005, Vol. 19 Issue 43, p15 

    The article reports that their is an increase in retirement plan by employees. In most companies, defined-contribution plans like 401(k)s are now a standard practice. More workers are also taking advantage of them. Participation rates still float below 50 percent, but are rising quietly....

  • DC Contribution Rates On the Rise.  // Plan Sponsor News;2015, p61 

    The article reports on the rise of defined contribution (DC) plan salary deferral rates in the U.S. in 2014.

  • A Saving Strategy. Schramm, Jennifer // HR Magazine;Jul2005, Vol. 50 Issue 7, p144 

    Deals with the practice of automatically enrolling employees in companies' defined contribution retirement plans, mainly 401(k) plans. Percentage of companies that use automatic enrollment based on a survey by the Society for Human Resource Management; Factor which contributed to the changes in...

  • How to Help a Plan With a Nondiscrimination Fail. Kelly, Sara // Plan Advisor News;2015, p1 

    The article presents views of Geno Cufone of retirement services firm Ascensus, about need of retirement plan advisers in testing actual deferral percentage (ADP) and actual contribution percentage (ACP) of pension plans. Topics discussed include monitoring nondiscrimination tests of ADP/ACP,...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics