IRS working on exec comp guidance following NAFCU request
In response to a letter from NAFCU President and CEO Dan Berger, the Internal Revenue Service (IRS) stated it plans to address implementation of the new tax law's employer-paid 21 percent excise tax on executive compensation of more than $1 million. Berger had brought credit unions' concerns over the tax to the agency in January.
The IRS' response, sent by Executive Compensation Branch Chief Catherine Fernandez, thanked Berger for identifying those concerns and notified Berger that the implementation of the executive compensation excise tax has been included in the agency's updated priority guidance plan.
Berger's January letter included requests for the IRS to: evaluate its authority to "grandfather" those employment contracts entered into on or before Nov. 2, 2017; support a bill providing technical corrections, especially one regarding grandfathering and other issues affecting credit unions; and provide clarifications to credit unions on how they should comply with the new excise tax on certain nonqualified deferred compensation plans. (Read more here)
NAFCU will continue to monitor the IRS' guidance on nonqualified deferred compensation plans to ensure parity between for-profit and not-for-profit corporations.
Add to Calendar 2018-08-21 18:00:00 2018-08-21 18:00:00 The ABCs of Executive Benefits Watch the Webinar On-Demand About the Webinar Today’s job market for credit union CEOs is more competitive than it was just ten years ago. The aging of a significant percentage of chief executives has created both opportunities and challenges. For the board of directors, retaining and motivating a high performing CEO is a key operational challenge, fraught with regulatory compliance and due diligence pitfalls. The good news is that with a properly designed and serviced executive benefit plan, boards can keep their key leadership in place. Join us for an overview of executive benefits: How they retain and motivate Different types of plans and how to customize Regulatory compliance and due diligence How plans generate income for the credit union Why servicing matters This webinar is geared toward those new to executive benefit programs or who would like a refresher on how benefit plans work. Web NAFCU firstname.lastname@example.org America/New_York public
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