Proposed regulations address the calculation of amounts includible in income and additional taxes imposed under Sec. 409A(a) (REG-148326-05).
Advertisement
Topics
Employee Benefits
Congress Passes Pension Amendments
The Worker, Retiree, and Employer Recovery Act makes various technical corrections to provisions of the Pension Protection Act of 2006, as well as enacting pension provisions that relate to the current economic crisis.
Determining the Correct FMV of Private Company Stock When Stock Options Are Granted
When a stock option is granted to an employee, great care must be taken to ensure that the exercise price is equal to or greater than the stock’s fair market value (FMV) on the option’s grant date. If the exercise price is lower than the FMV, resulting in a “discounted” option, the option is subject to the Sec. 409A rules for nonqualified deferred compensation plans.
Subsequent Deferral Elections May Bring Surprises Under Sec. 409A
Nonqualified deferred compensation must comply with a vast set of new rules for nonqualified plans.
Sec. 409A Prop. Regs. and Guidance for Noncompliant Plans
The IRS has issued proposed regulations on failures to comply with the timing rules of Sec. 409A
IRS Amends No-Rule Policy for NQDC Plans
The IRS has announced that it is modifying its policy on issuing letter rulings on the tax consequences of Sec. 409A nonqualified deferred compensation (NQDC) plans.
Summary of the Sec. 409A Correction Program
The IRS has established a correction program for certain violations of the Sec. 409A rules.
Current Developments in Employee Benefits and Pensions (Part II)
This article provides an overview of current developments in employee benefits and focuses on new guidance regarding qualified retirement plans.
Sec. 409A: International Issues
Application of Sec. 409A is not limited to plans maintained in the United States, nor is it necessarily limited to deferred compensation earned for service performed in the United States. Therefore, Sec. 409A can come into play in the case of deferred compensation agreements for either inbound or outbound employees as long as the employee is a U.S. tax resident or a citizen.
IRS Provides Guidance on Contributions to HSAs
The Tax Relief and Health Care Act of 2006, P.L. 109-432, made changes to the treatment of contributions to health savings accounts (HSAs) under Sec. 223. The IRS issued two notices explaining those changes.
Current Developments in Employee Benefits and Pensions (Part I)
This article focuses on new guidance regarding executive compensation and welfare benefits.
IRS Reports High Level of SARSEP Errors
An IRS review of salary reduction simplified employee pension (SARSEP) plans has uncovered errors that could affect plan sponsors and employees.
Substantially Equal Periodic Payments from an IRA
This article examines the formulas provided by the IRS as safe-harbor methods for calculating the SEPP amount.
IRS Increases Scrutiny of Performance-Based Plans Under Sec. 162(m)
Editor: Frank J. O’Connell Jr., CPA, Esq. Sec. 162(m) governs the deductibility of certain excessive employee compensation. In recent months the IRS has issued Rev. Rul. 2008-13 and Rev. Rul. 2008-32, providing for additional clarification related to certain components of the performance-based compensation rules contained within Sec. 162(m)(4)(C) and Regs.
Ten Things to Know About the Roth 401(k)
Editor: Frank J. O’Connell Jr., CPA, Esq. Since the introduction of the Roth IRA in 1997, it has become a popular retirement vehicle. However, the contribution limits for the Roth IRA have been relatively low and, due to participant income limitations, not everyone has been able take advantage of the
AICPA Comments on Sec. 409A Correction Program
In Notice 2007-100, the Service established a correction program for certain failures to comply with Sec. 409A (governing nonqualified deferred compensation plans). The correction program provides for the self-correction of certain unintentional operational errors without any penalty if the error is corrected within the same tax year in which the
Using Serial IRAs to Stretch the 60-Day Rule for IRA Rollovers
This item outlines steps that can be taken to stretch the 60-day IRA rollover window to 300 days without violating the 12-month rule.
An Analysis of the New Roth 401(k)/403(b) Plans
The Roth 401(k)/403(b) provisions combine characteristics of Roth IRA and traditional 401(k)/403(b) plans in one retirement program.
IRS Allows Penalty-Free Withdrawal of Stimulus Payments from IRAs
The IRS has announced that taxpayers who had their economic stimulus payments deposited directly into a tax-favored account can generally withdraw amounts up to the amount of that payment tax free and penalty free until the due date of their 2008 income tax return, including extensions.
Tax Planning with Single-Employer Qualified Plans
This article discusses the rules of Sec. 404 regarding the ability to deduct contributions to single-employer qualified retirement plans. It explains required contributions, and respective limitations, for tax deductible contributions to qualified retirement plans and outlines the requirements related to the timing of plan contributions.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
