X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ARLINGTON, Va. – NAFCU is seeking input from its members on a new section of the Internal Revenue Code that provides guidance on nonqualified deferred compensation plans. Treasury and IRS issued clarifications last Wednesday on guidance on distributions and other features of nonqualified deferred compensation plans addressed under section 409(A) of the Internal Revenue Code. The clarifications are that changes in a plan having to do with payment elections affecting previously deferred income will not be treated as an acceleration of plan payments. Both agencies also clarified that any plan adopted before Dec. 31, 2005 can be terminated and deferral elections can be canceled without making the plan noncompliant with the law. On Dec. 20, 2004, both agencies issued a notice saying unless specified requirements are met, all amounts deferred under a nonqualified deferred compensation plan for all taxable years are currently includible in gross income, to the extent not subject to a substantial risk of forfeiture and not previously included in gross income. Credit unions are not likely to be impacted by the new 409(A) section, CUNA has reported. By June, however, the IRS is scheduled to issue guidance on whether FCUs are considered “federal governmental instrumentalities” and thus, able to offer 457(f) plans using a for-profit model.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.