This course is designed to provide a deep understanding of NQDC plans, focusing on the regulations, tax nuances, and strategies to understand to effectively advise clients. Participants will learn about the key features of NQDC plans, their differences from qualified retirement plans, and the compliance requirements under IRC Section 409A and other relevant regulations.
DESIGNED FOR
Accounting and finance professionals who wish to gain a deep understanding of nonqualified deferred compensation
BENEFITS
- Define nonqualified deferred compensation (NQDC) and explain how it differs from qualified retirement plans
- Identify and describe the key compliance requirements for NQDC plans, including IRC Section 409A and other relevant regulations
- Understand the taxation of NQDC plans, including the timing of income recognition, FICA, and federal/state taxes, and the tax consequences for both employers and employees
- Distinguish between the various types of NQDC plans, such as salary deferral arrangements, and supplemental executive retirement plans (SERPs), and understand their unique features and benefits
- Understand the financing and funding options available for NQDC plans and the pros and cons of each approach
- Develop and implement effective planning strategies for NQDC plans, considering factors such as participant demographics, company objectives, and tax efficiency
- Summarize the key takeaways from the course, emphasizing the importance of proper plan design, compliance, and administration in maximizing the benefits of NQDC plans for both employers and employees
HIGHLIGHTS
- The basics of nonqualified deferred compensation (NQDC)
- NQDC compliance
- Taxation of NQDC plans
- Types of NQDC plans
- Financing/funding NQDC plans
- Planning strategies
COURSE LEVEL
Basic
ADVANCE PREPARATION
None