Deferred compensation agreements and ERISA pension plan compliance

One of the few remaining effective devices for deferring income taxation involves nonqualified deferred compensation agreements (DCA). Although much literature exists to assist the business and tax adviser with the tax compliance issues relevant to nonqualified deferred compensation agreements, a co...

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Bibliographic Details
Published inThe Ohio CPA journal Vol. 55; no. 4; p. 42
Main Author Altieri, Mark P
Format Journal Article
LanguageEnglish
Published Columbus Ohio Society of Certified Public Accountants 01.12.1996
Subjects
Agreements
Compensation
Compliance
Deferred compensation
Employees
Employers
Employment
ERISA
Nonqualified pension plans
Pension plans
Reconciliation
Retirement
Taxation
Wages & salaries
United States > US
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Summary:One of the few remaining effective devices for deferring income taxation involves nonqualified deferred compensation agreements (DCA). Although much literature exists to assist the business and tax adviser with the tax compliance issues relevant to nonqualified deferred compensation agreements, a concise primer on ERISA non-tax compliance requirements for such arrangements has not been readily available. Both elective and nonelective DCAs can be structured and implemented so as to fit within the excess benefit and top-hat plan exceptions. It is important to note, however, that any form of DCA is likely to constitute a pension plan as defined under ERISA. ERISA pension plans must generally contend with the Title I reporting and disclosure, participation and vesting, funding and fiduciary responsibility requirements of the law.
ISSN:0749-8284