RET.11.HO.12 - 2015MoneyEducation 11th Edition RETIREMENT...

Info icon This preview shows pages 1–3. Sign up to view the full content.

© 2015 Money Education Retirement Planning, 11th Ed. Chapter 12 1 © 2015 Money Education CH 12 | Deferred Compensation & Nonqualified Plans 1 Retirement Planning and Employee Benefits CHAPTER 12: DEFERRED COMPENSATION & NONQUALIFIED PLANS 11 th Edition RETIREMENT PLANNING AND EMPLOYEE BENEFITS Michael A. Dalton | James F. Dalton © 2015 Money Education CH 12 | Deferred Compensation & Nonqualified Plans 2 Retirement Planning and Employee Benefits Chapter 12: Learning Objectives 1. Explain the general characteristics of a deferred compensation plan and when it is appropriate. 2. Understand the significance of IRC §409A. 3. Describe the tax benefits of a deferred compensation plan available to employees and employers. 4. Discuss the tax issues of constructive receipt, substantial risk of forfeiture, economic benefit doctrine and income and payroll tax implications of a deferred compensation plan. 5. Analyze the benefits and risks of filing an 83(b) election. 6. Describe the various types of deferred compensation arrangements. 7. Calculate the income attributable to the exercise of ISOs and NQSOs as well as the gain from the subsequent sale of the acquired stock. 8. Explain the mechanics of restricted stock and ESPPs. © 2015 Money Education CH 12 | Deferred Compensation & Nonqualified Plans 3 Retirement Planning and Employee Benefits Why Offer Deferred Compensation? To provide benefits to a select group of employees without the limitations of qualified plans To discriminate the provision of benefits to key employees Qualified plans cannot provide sufficient retirement resources for key executives who earn in excess of the covered compensation limit of $265,000 for 2015
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.