Change of Plan?
New tax laws require a new look at deferred compensation plans.
A new federal law governing deferred compensation plans could mean substantially higher taxes and penalties if companies and their employees aren't paying attention.
The American Jobs Creation Act of 2004 dramatically changed these types of plans, which businesses use to retain and reward key employees. With nonqualified deferred compensation plans, business owners promise to pay employees a sum of money at a future date. The new law defines plans so broadly that it applies not only to traditional plans, but also to equity-based plans, such as discounted stock options, stock appreciation rights and phantom stock plans.
Continue reading this article -- and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5!