Nonqualified deferred compensation plan reviewed for purposes of estate tax marital deduction

Article Abstract:

The Internal Revenue Service has ruled on issues surrounding a participant in a nonqualified deferred compensation plan that was put into effect as of Jan 1, 1991. The IRS has ruled that, if the participant dies and leaves a surviving spouse, the unrecovered payments are considered qualified terminable interest property if the executor wishes to treat the annuity payments in that manner. The amount included in the participant's estate qualifies for the marital deduction.

Laws, regulations and rules, Transfer taxes, Salary reduction savings plans, 401K plans, Marital deduction

---

New York State Bar Association, Tax Section, Committee on Qualified Plans and Committee on Nonqualified Employee Benefits

Article Abstract:

The Committee on Qualified Plans and the Committee on Nonqualified Employee Benefits of the New York State Bar Ass'n's Tax Section has issued a report on qualified plan matters coming up in the context of mergers and acquisitions. The report's aim is to enhance both flexibility and predictability in this area and to help bring about ERISA's aim of protecting benefits. The report addresses continuity of service and of plan sponsorship issues.

Management, Economic aspects, Acquisitions and mergers, Pension funds, Liability of successor corporations, Corporate succession liability

---

IRS rules on tax consequences of transfer of nonqualified stock options by employee to family members under trust for their benefit

Article Abstract:

A 1997 IRS ruling held a grantee could transfer stock options to a trust for the benefit of family members without incurring burdensome tax consequences. The decision should prove helpful for estate planning by business executives, while providing tax guidance to companies who want to allow executives to make such transfers.

Stock Options, United States, Executive compensation, Trusts and trustees, Trustees, Trusts (Law)

Similar abstracts:

• Abstracts: The Nile River: potential for conflict and cooperation in the face of water degradation. Institutions and conjunctive water management among three Western states
• Abstracts: Observations on the post-Bayh-Dole rise of patenting at American universities. Challenging claims! Patenting computer programs in Europe and the USA
• Abstracts: Proxy reform, takeovers, and corporate control: the need for a new orientation. Facilitating shareholder communications
• Abstracts: Enhancing document management. Systems can ease burden of document production. Document management systems add efficiency
• Abstracts: Golden parachutes get closer inspection. Deferred-compensation plans make a comeback; retirement plan caps and higher top tax rate resurrect the use of deferred executive pay vehicles

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.