Qualified vs. Non-Qualified Deferred Compensation Plan - 409A, ERISA and Govt. Filing Requirements

Why Should You Attend:

Nonqualified deferred compensation plans can provide executives with benefits in excess of those provided under qualified deferred compensation plans. While attractive to executives, these plans are subject to complex rules. It is critical that employers understand and properly implement these rules in order to maximize the chances that such plans will provide the intended benefits. A failure to follow these requirements can result in costly penalties to executives and may increase the likelihood of litigation.

In order to defer taxation and avoid penalties, such plans must meet a number of specific requirements under Section 409A of the Code. Such plans also must be designed and operated in a way that meets exceptions under the Employee Retirement Income Security Act (ERISA) in order to avoid the application of ERISA’s fiduciary and anti-alienation provisions. A failure to design and operate a nonqualified deferred compensation in accordance with these rules can result in the early taxation of plan contributions, tax penalties, and potential fiduciary liability for plan sponsors.

This presentation will provide you with a good foundation to help you design and administer these nonqualified deferred compensation plans in a legally compliant manner.

Areas Covered in the Webinar:

• The differences and similarities between qualified and nonqualified plans
• Code Section 409A requirements
• Application of ERISA to nonqualified plans
• Plan document and governmental filing requirements
• Use of rabbi trusts to fund plan benefits
• Avoiding costly litigation by following best practices

Who Will Benefit:

• Employers
• Plan administrators
• Compensation specialists
• Claims administrators
• Payroll
• Benefit managers
• HR personnel

Instructor Profile:

Steve Flores, is an attorney with Winston & Strawn LLP who concentrates his practice in employee benefits and executive compensation matters.

Mr. Flores advises clients of all sizes, both in the public and private sector, on a variety of employee benefit and executive compensation matters, including IRS and DOL audits, ERISA’s fiduciary and prohibited transaction provisions, HIPAA compliance, health care reform compliance, and the implementation and administration of employee benefit plans, including tax-qualified retirement plans, multiemployer plans, health and welfare benefits, employment and separation agreements, non-qualified deferred compensation arrangements, stock options, and other incentive compensation arrangements.

Mr. Flores also advises clients with employee benefit and executive compensation issues in mergers and acquisitions and lending transactions.

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