NQDC Insights & Updates (August 6, 2015)

At myNQDC.com, we continue to enrich our content with crucial updates and practical new articles and FAQs on key NQDC topics. Below we outline major additions and changes at myNQDC.com during the past few months.

IRS Updates Nonqualified Deferred Compensation Audit Guide

In June 2015, the IRS finally updated its Nonqualified Deferred Compensation Audit Techniques Guide, in which it confirms the tax principles that apply to NQDC. Given how important IRC Section 409A has become to nonqualified plans since the prior update, in February 2005, it is surprising how relatively little coverage the guide devotes to 409A. Nevertheless, the guide continues to be a valuable NQDC resource.

NQDC Plans Affected By The Supreme Court’s Rulings On Marriage Equality

As most people are aware, at the end of June the Supreme Court ruled in Obergefell v. Hodges that states cannot deny a marriage license to two people of the same sex and must recognize all same-sex marriages registered in other states. This decision followed a prior ruling, US v. Windsor, which held that people in same-sex marriages recognized under the laws of the states where they live are considered married for the purposes of federal statutes and regulations that mention or involve marital status. Among more than 1,000 federal laws and regulations touched by the rulings are those which affect the design and administration of employee benefit plans. While the Obergefell decision was a more significant societal landmark, the Windsor decision had a bigger impact on corporate benefit plans. Windsor led companies to look through benefit plans and policies, as well administrative procedures, for situations where marital status matters. As a result, companies had already made many changes in both tax-qualified and nonqualified plans even before the Obergefell ruling in June 2015. For details about the NQDC impact of the Supreme Court’s rulings, see our FAQ on this topic at myNQDC.com.

Selected New And Updated Content At myNQDC.com

• Updated FAQ: What can I not do with my NQDC account?
• New FAQ: Are there strategies for using the redeferral election?
• New Article: What Participants Need To Know About Section 409A (Parts 1 and 2)
• New Article: Foreign Executives Moving To The United States To Work: What To Know About Your Company’s Nonqualified Deferred Compensation Plan
• New FAQ: I am a US executive moving overseas to work. When I live outside the United States, does the tax treatment change for deferrals and distributions under my nonqualified deferred compensation plan?

Learning Center For NQDC Courses And CE Credit

In the myNQDC.com Learning Center, our courses of study and exams cover several NQDC subjects. These programs offer up to 6 continuing education credits for CFPs, 6 PACE credit hours for CLU® and ChFC® professionals, and 12 CPE hours for ASPPA members. The courses are dynamic, interactive learning tools that teach NQDC topics in a memorable way. The answer key for each exam also links to relevant content on myNQDC.com for further reading and study. The courses and exams in the Learning Center can be licensed and customized.

Licensing And Premium Memberships

Thank you for your membership at myNQDC.com. For more information about myNQDC.com, including corporate services and testimonials, see the About Us and Licensing sections. Please contact us (617-734-1979, info@mystockoptions.com) to find out about licensing content for your website, print materials, and/or newsletters, and for premium memberships at special bulk rates for your staff.