Businesses of all sizes, from brand new startups to large blue-chip enterprises, like to use equity compensation for key employees. This ties the employee’s financial interest to that of the company and can provide the company with a creative additional way of compensating individuals. Depending on the type of plan a business sets up, this compensation may be better tax wise for employees than traditional Read More

The Consolidated Omnibus Budget Reconciliation Act of 1985’s continuation of coverage requirements, now commonly known as COBRA, is the option employees have to continue with their existing insurance coverage for a period of time after termination of employment. Employees may choose to keep their current plan instead of shopping for a plan on the Exchange for a number of reasons, often related to coverage. Once a Read More

In general, qualified retirement plans require participants to begin taking the required minimum distribution (RMD) by April 1st of the year they turn 70 ½. Some plan participants, however, intend to keep working and want to take an exception to this rule, leaving the funds in their retirement plan to further grow. When taking the exception, then the RMD begins when the employee retires or is laid off from work with Read More

Recently, the IRS issued guidance on the election to defer compensation under section 83(i). However, there is still much question, especially for smaller operations, regarding the administrative headache, as compared to the benefits, of setting up deferred compensation. Indeed, many businesses are electing to simply avoid 83(i) by amending their equity plans altogether. In short, section 83(i) permits private Read More