Articles

Focus on Compliance: Timing of Bonus Deferral Elections

Internal Revenue Code Section 409A (“IRC 409A”) requiresthat elections to defer compensation be made only at specified times. An election to defer compensation that is made later than permitted under IRC 409A is not valid, and would preclude the intended deferral of income.

Focus on Compliance: Mid-Year Enrollments

Internal Revenue Code Section 409A (“IRC 409A”) permits employees who first become eligible to participate in a non-qualified plan during the middle of the year to enroll within 30 days of initial eligibility. This rule may be beneficial to employees who are first hired in – or promoted to an eligible position during the middle of a tax year. However, care must be taken to ensure the rule is properly applied.

Focus on Compliance: Expatriates

Multinational corporations frequently transfer employees to work in foreign countries for extended periods. Expatriation raises questions regarding the employee’s status as a participant in the company’s non-qualified deferred compensation plan. Legislation adopted in 2008 (the Heroes Earnings Assistance and Tax Relief Act) may also require that deferred compensation benefits be included in income on the expatriation date.

Pay Inequality at Your Firm and What to do About It

You may have pay inequality at your firm and not even be aware of it. Taking a deeper look at pay practices and amounts across is critical in establishing equitable pay across all roles and areas of your organization. 
 

The Growth of Managed Accounts in Retirement Plans

Managed Account services are an increasing trend among plan sponsors. As noted in the 2017 edition of How America Saves, 27% of plans offer managed account advice, and because larger plans are more likely to offer advice, half of plan participants have access to a service. 

Rabbi Trusts and Changes in Control Situations

Employers who maintain non-qualified deferred compensation plans or other supplemental employee retirement plans for their senior executives and other highly compensated employees may want to consider establishing a “rabbi trust” (so named because the first such arrangement was established by a synagogue to provide deferred compensation to its rabbi).

Stay on Track with Required Minimum Distributions

Do you know which of your former employees who still have savings in your retirement plan are turning 70½ this year? Or how many are older than that? Or how many accounts in your plan are held by beneficiaries? These individuals are required by law to withdraw money from your retirement plan each year. As a plan sponsor, you need to keep track of birthdates and beneficiary ownership, so you can make certain that plan distributions are being made properly.

Michael DiCenso Joins Newport Group as Executive Vice President

Walnut Creek, CA—June 19, 2018—Newport Group, a leading provider of retirement plans, insurance, and consulting services, announced today that Michael DiCenso has joined the organization as Executive Vice President.

Tax Reform: A Deeper Dive into Amended Section 162(m)

This article addresses recent tax law developments affecting non-qualified deferred compensation plans sponsored by publicly traded corporations and non-public organizations that are required to file statements with the Securities and Exchange Commission. 

The Purchase of BOLI Post Tax-Reform

For many decades, banks of all sizes have used bank-owned life insurance (BOLI) as an effecient tool for offsetting employee benefit cost. Today, over $189 billion of BOLI resides on U.S. bank balance sheets.1

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Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and Newport Group Consulting, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and Newport Group Consulting, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment advisers. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Trust and custody services provided by Newport Trust Company, a New Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.