News & Analysis as of

Deferred Compensation

Deferred Compensation is a financial arrangement whereby a portion of an employee's current wages are distributed at a later time, usually to delay tax liability. Deferred compensation often takes the form of... more +
Deferred Compensation is a financial arrangement whereby a portion of an employee's current wages are distributed at a later time, usually to delay tax liability. Deferred compensation often takes the form of stock options or severance payments.  less -
Seyfarth Shaw LLP

Almost 20 Years of Section 409A: Is Your Documentation Still in Sync?

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It has been nearly 20 years since Internal Revenue Code Section 409A transformed the rules governing nonqualified deferred compensation (NQDC). Many employers updated written plan documents by the 2008 deadline—and haven’t...more

Pullman & Comley, LLC

Understanding Section 409A and Its Implications for Employers and Employment Agreements

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Prior to the enactment of Section 409A, no single section of the Internal Revenue Code governed taxation of nonqualified deferred compensation.  Income inclusion of deferred compensation was historically governed by a variety...more

Morrison & Foerster LLP

Executive Compensation + Benefits Diligence in Early-Stage Financings

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Early-stage financings set the foundation for a company’s growth trajectory. While product, market, and financial diligence often take center stage, executive compensation and benefits arrangements can also significantly...more

DarrowEverett LLP

Navigating Complex Asset Valuation in High-Net-Worth Divorces

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In high-net-worth (“HNW”), what you own is rarely the real battle, it’s what those assets are truly worth. HNW divorces bring unique financial and legal challenges that go far beyond traditional marital estate division....more

Verrill

Year-End Amendments for 457(b) Plans—A Reminder

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Non-governmental employers that sponsor Section 457(b) deferred compensation plans should be mindful that December 31, 2025, is the deadline for plan amendments to reflect changes in law included in the SECURE 2.0 Act of 2022...more

Cooley LLP

Incentive Stock Option Modifications – Key Considerations and Traps for the Unwary

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Incentive stock options (ISOs) are a form of equity compensation widely used by companies with employees who are subject to US taxes. Emerging and late-stage private companies alike frequently choose to issue ISOs because...more

Structured Consulting

Beyond the Closing Table: Turning the Sale of a Law Firm into Tax-Savvy Income

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Selling a law firm is literally the culmination of a lifetime of work. It’s the Big One. It’s the reward for the effort of an entire career -- decades, hundreds and hundreds of depositions, motions, clients, settlements and...more

Phelps Dunbar

The Billion-Dollar Question: Are Deferred Compensation Contracts in the MLB Legal, or Have the Dodgers Broken Baseball?

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The Los Angeles Dodgers leveraged deferred compensation contracts to gain $241.44 million in player value for 2026 while paying half that amount. With two World Series in the last four years and another bid this year, this...more

Epstein Becker & Green

The 409A Horror Show: Don’t Let Year-End Turn Into a Tax Nightmare

Epstein Becker & Green on

As year-end approaches, it is an opportune time for companies to run an internal audit of their nonqualified deferred compensation plans to flag any potential violations of IRC Section 409A (“Section 409A”)....more

Foley & Lardner LLP

Practical Implications of Immigration Enforcement Activity on Benefit Plans - Part II

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With the Trump Administration’s continued emphasis on enforcement of U.S. immigration laws, employers are increasingly concerned about worksite raids. In certain circumstances, immigration law enforcement officials will make...more

WilmerHale

Back to Basics: Why Get a Section 409A Valuation?

WilmerHale on

While companies consider ever more creative equity compensation structures to attract and retain talent, it is critical that they not lose sight of the fundamentals. And one of the most fundamental of fundamentals is that a...more

Troutman Pepper Locke

DOL Advisory Opinion Confirms Post-Employment Vesting Provisions in RSUs Should Not Create an ERISA Pension Plan

Troutman Pepper Locke on

On September 9, 2025, the Department of Labor (DOL) issued Advisory Opinion 2025-03A addressing the following question: Are awards of restricted stock units (RSUs) that permit post-employment vesting considered a “pension...more

Gerald Nowotny - Law Office of Gerald R....

And When I Die! – The Eternal Benefits of PPLI

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This article introduces the concept of eliminating income and estate taxation on deferred income while providing multiple generations with tax-free income and accumulation using Private Placement Life Insurance (“PPLI”). Of...more

Proskauer - Employee Benefits & Executive...

FICA Tax: Navigating the Nonqualified Deferred Compensation Special Timing Rule

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Compensation is generally subject to federal income tax and FICA tax when compensation is actually paid to an employee. However, nonqualified deferred compensation (NQDC) may be subject to FICA taxation before federal income...more

DarrowEverett LLP

The Earnout Equation: Tax Tips for Both Buyers and Sellers

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Earnouts are a form of contingent consideration that the buyer of a business pays to the seller in the period following the acquisition, based on the business achieving various financial metrics related to its performance...more

DarrowEverett LLP

Deferred Pay at Risk: The Hidden Dangers of Rabbi Trusts

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News that Steward Health Care executives may lose millions in unqualified retirement savings due to the company's use of a "rabbi trust" has sent a jolt through the ranks of corporate leadership. Steward's deferred...more

Offit Kurman

Unexpected Tax Penalties in Talent Contracts: Could Your Motion Picture, Recording, or Sports Contract be Subject to IRC Section...

Offit Kurman on

Could your motion picture agreement, recording agreement, or sports contract be a non-qualified deferred compensation arrangement? You may think it unlikely, but a non-qualified deferred compensation arrangement refers to any...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Group Employee Terminations

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Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Fleurinord Law PLLC

Shohei Ohtani’s $700M Tax Deferral Strategy: What High-Income Earners Must Know

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Let’s be real—when you hear someone landed a $700 million deal, your first thought probably isn’t taxes. But Shohei Ohtani’s record-breaking contract with the Los Angeles Dodgers has become ground zero in a growing tax policy...more

Foley & Lardner LLP

Benefits Basics - When an Employee Dies: A Resource Guide for HR & Benefits Professionals

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As a member of your company’s human resources or employee benefits department, one of the most difficult calls you may receive is from a colleague or an employee’s family member notifying you of the death of an employee. This...more

Gerald Nowotny - Law Office of Gerald R....

Still the One! – The Use of Private Placement Life Insurance in Tax Planning for Trial Attorneys with Contingency Fee Income

Gerald Nowotny - Law Office of Gerald R.... on

In the Soundtrack of Our Lives, one of the songs that I still get to hear from time to time on Sirius XM, is “Still the One” which was recorded and released by the band Orleans in 1976. I was in the tenth grade just to be...more

Bricker Graydon Wyatt LLP

Do I Need a 409A Valuation for my Company?

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If you have equity as part of your retirement or executive compensation plans, you likely need a 409A valuation. The need for a valuation also applies if you are preparing to issue equity (equity grants or stock options) or...more

Lowenstein Sandler LLP

Preparing for an M&A Transaction from an Employment and Executive Compensation Perspective

Lowenstein Sandler LLP on

In this episode of “Just Compensation,” Megan Monson, Taryn E. Cannataro, and Jessica Kriegsfeld of Lowenstein’s Executive Compensation and Employee Benefits group discuss some considerations for a company preparing for an...more

Snell & Wilmer

2024 End-of-Year Plan Sponsor “To Do” List (Part 4) Executive Compensation

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As 2024 comes to an end, we are pleased to present our traditional End-of-Year Plan Sponsor “To Do” Lists. This year, we present our “To Do” Lists in four separate SW Benefits Updates. Part 1 addressed health and welfare plan...more

Carlton Fields

IRS Clarifies Application of Required Minimum Distribution Rules to Inherited Retirement Accounts

Carlton Fields on

The Secure Act, passed in 2019 and updated in 2022, made significant changes to the required minimum distribution (RMD) rules applicable to qualified retirement plans, IRAs, 403(b) plans, and other eligible deferred...more

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