A provision of the Tax Cuts and Jobs Act, which the GOP is billing as a comprehensive tax reform bill, would eliminate the existing tax deferral of non-qualified deferred compensation packages, according to tax attorneys at Ernst & Young.
Employers use NQDCs to incentivize company officers and other highly compensated workers, and in some cases to provide retirement savings vehicles above the contribution limits in 401(k) plans.
Under current tax law, employers can structure NQDC plans so that participants are taxed on the benefits when assets are withdrawn, or stock options are exercised, at retirement or a predetermined withdrawal schedule.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
