The Office of Lance Wallach
| Articles |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| "America's leading tax representation firm."(TM) |
| Serving clients nationwide Call us today: 516-938-5007 Email us at: LanWalla@aol.com Fax #: 516-938-6330 |
| Every one of our consulting attorneys, CPAs & ex IRS Agents has over 25 years of professional experience! We believe that no firm has more experienced professionals to assist our clients than we do!! |
| Lance Wallach Managing Director |
 |
New Laws for Non-qualified Deferred Compensation By: Lance Wallach This regulation is now under IRC Section 409(a). The employees had until December 31, 2008 to make their elections for compensation to be received in 2009. In the first year in which a participant is eligible to participate in a plan, they may make an election within 30 days after the date of eligibility, but only with respect to compensation earned subsequent to the election. In addition, in the case of any performance-based compensation covering a period of at least 12 months, a participant may make an election no later than six months before the end of the covered period. A plan may allow a participant to elect to delay a scheduled distribution from a plan if the new election is made at least 12 months in advance and delays the distribution at least five years. Within the five years, a premature distribution may only be made on account of death, disability or unforeseeable emergency. A plan may permit the acceleration of a payment in only a few circumstances listed below.
A non-qualified deferred compensation plan is retroactively taxable to the participant as of the time of the initial deferral. In addition to the normal income tax on the compensation, the participant must pay an additional 20-percent tax, as well as interest at a rate 1 percent higher than the normal underpayment rate. *For further information, or to contact this author, please leave a comment and your e-mail address in the forum below. Click Here to down load this article Go back
Lance Wallach, CLU, ChFC, CIMC, speaks and writes about benefit plans, tax reductions strategies, and financial plans. He has authored numerous books for the AICPA, Bisk Total tape, and others. He can be reached at (516) 938-5007 or lawallach@aol.com. For more articles on this or other subjects, feel free to visit his website at www.vebaplan.com. Lance Wallach, the National Society of Accountants Speaker of the Year, speaks and writes extensively about retirement plans, Circular 230 problems and tax reduction strategies. He speaks at more than 40 conventions annually, writes for over 50 publications, is quoted regularly in the press, and has written numerous best-selling AICPA books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Business Hot Spots. He does extensive expert witness work and has never lost a case. Contact Lance at 516.938.5007 or lawallach@aol.com The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice. |
SMALL BUSINESS TAX NEWS New Laws for Non-qualified Deferred Compensation |
| TaxAudit419.com Lawyer4audits.com VebaPlan.org Taxlibrary.us LanceWallachchfc.blogspot.com The Lance Wallach Network Follow me on facebook & twitter Copyright (C) 2010 - Lance Wallach |