Executive compensation: Preparing for new 457(f) rules

first_img 12SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr As more credit unions use non-qualified deferred compensation plans (NQDC) to recruit, retain, and reward CEOs and other top executives, regulations relating to a common component of supplemental executive retirement plans (SERPs) may change soon.The Internal Revenue Service is expected to issue final rules for Internal Revenue Code Section 457, following the issuance of proposed final regulations on June 22, 2016. If the final rules are issued in 2017, they could go into effect as early as Jan. 1, 2018.Many of the proposed rules clarify circumstances under which a NQDC plan could be subject to taxation or even penalties.A well-designed NQDC plan is unlikely to leave an executive or retiree subject to unexpected taxes or penalties. continue reading »last_img

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