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Nonqualified plans are often used as an important tool to attract and retain executives and other key talent. In addition to helping with recruitment and lowering turnover, these plans can also be used to motivate performance.
However, understanding the tax and regulatory implications of various nonqualified plans is vital in avoiding compliance issues. Learn more on our perspective related to executive and incentive compensation.
Section 4960 proposed rules add examples and clarity while generally following interim guidance and providing taxpayer-friendly exceptions.
The IRS released Notice 2019-09 providing guidance to assist taxpayers in implementing new executive compensation rules under section 4960.
When setting up or managing nonqualified deferred compensation plans, employers should consider several key questions.
Private employers must determine fair market value of equity for employee compensation purposes under general tax rules.
Effective executive compensation structuring requires a strategic mix of components and metrics closely aligned with your goals.
The following questions and answers explain the section 409A considerations that companies need to be aware of when issuing stock options.
Get answers to frequently asked questions about the tax deferral opportunity on qualified equity grants for private companies.