- Davidson v Henkel: Mishandling the Special Timing Rule Can Severely Impact Plan Sponsors and ParticipantsRead More
In the case Davidson v. Henkel Corporation, a former employee and participant in the company’s Nonqualified Deferred Compensation (NQDC) plan sought to recover plan benefits that were reduced because the employer failed to recognize the Internal Revenue Code’s “Special Timing Rule” for the withholding of FICA taxes on vested contributions to the NQDC plan.
- Four Nonqualified Plan Trends To Watch With Tax Rate IncreasesRead More
- Nolan Financial Released Unqualified SSAE 16 ReportRead More
Chevy Chase, Maryland – January 10, 2012: Today Nolan Financial Group announced that, for the sixth consecutive year, its non-qualified plan administration unit received an unqualified SSAE -16 report within the American Institute of Certified Public Accountants’ (AICPA) internationally recognized auditing standard known as SSAE - 16 (Standards for Attestation Engagements No. 16). The examination is conducted annually by independent outside auditors and tests the effectiveness of a company’s internal controls.
- December 31, 2010 Deadline Offers Maximum Corrective Relief for Plans Subject to 409ARead More
On November 30, 2010, the IRS issued Notice 2010-80 (Modification to the Relief and Guidance on Corrections of Certain Failures of a Nonqualified Deferred Compensation Plan to Comply with § 409A(a)). This NolanWIRE discusses the ameliorative relief, offering the most generous provisions, available only until December 31, 2010. Subsequently, less generous provisions will apply. In order to take advantage of the most generous provisions of the corrective relief available, the corrections must be made by December 31, 2010.
- The Next Generation of Funding Alternatives for Nonqualified PlansRead More
- 409A Second ChancesRead More
- Additional Analysis of the Executive Compensation Restrictions that Apply to TARP CompaniesRead More
- IRS Indicates that TARP Equity Purchases Do Not Cause Change of Control to Allow Accelerated Distributions for 409A PurposesRead More
SEE THE CIRCULAR 230 DISCLAIMERS APPENDED TO THE CONCLUSION OF THIS WASHINGTON REPORT.
The Internal Revenue Service issued Notice 2009-49 to provide that equity purchases under the Troubled Asset Recovery Program ("TARP") do not cause changes in control that would allow accelerated distributions for Revenue Code section 409A purposes. In taking this position, the IRS noted that to allow accelerated distributions following such government purchases would be inconsistent with the purposes of TARP and 409A. The notice provides that this position is effective for TARP equity purchases entered into on or after June 4, 2009.
- Limitations on Terminating and Otherwise Changing Nonqualified Deferred Compensation Arrangements Subject to Code Section 409ARead More