Guidelines offered on deferred comp rules.Recently, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. issued final regulations to provide guidance on rules for nonqualified deferred compensation plans under Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. Sec. 409A--rules that went into effect on Jan. 1, 2005. Grant Thornton LLP  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . suggests seven steps that companies should take to comply with the rules: 1: Identify arrangements that provide for a deferral deferral - Waiting for quiet on the Ethernet. of compensation. 2: For each arrangement, decide between removing the deferral of compensation and complying with the rules. 3: Design each arrangement to comply with the rules. 4: Develop and implement policies and administrative procedures. 5: Prepare a written plan by Dec. 31, 2007. 6: Obtain service provider elections as to time/form of payment by Dec. 31, 2007. 7: Evaluate compliance for the period between Jan. 1, 2005 and Jan. 1, 2008. If companies don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. take steps to comply, employees face immediate taxation, plus a 20 percent penalty and interest, says Edgar Adkins, a tax partner and the compensation and benefits technical practice leader in Grant Thornton's National Tax Office in Washington, D.C. "Unfortunately, non-compliance is a very real possibility, because the rules are complex, and because many companies do not realize that the rules apply to a very broad range of compensation and benefits arrangements," he says. Grant Thornton's Quick Reference Guide to Complying with the Sec. 409A Deferred Compensation Plan Rules offers additional details. To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the full guide, go to: www.GrantThornton.com/cbcquickrefguides. |
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