The regulations under Section 457(f) provide planning opportunities for nonprofit entities in structuring deferred compensation and benefits for executives. This has become particularly important with the recent passage of tax reform legislation that adds a 21% tax penalty on most tax-exempt organizations that pay their “covered employees” compensation that either exceeds $1 million for the taxable year or is treated as an “excess parachute payment.” Compensation that is no longer subject to a substantial risk of forfeiture (i.e., “vested”) as defined under IRC Section 457(f) will be included for calculating these amounts in the year the compensation vests, even if it is paid, or taxed, in a subsequent year.
Employee benefits and ERISA counsel for nonprofit entities will need to master the ins and outs of IRC Section 457 and the proposed 457 regulations in order to advise their clients on how to structure compensation arrangements to not only maximize tax benefits for the executives and the organization, but also to minimize the amounts that will exceed the $1 million threshold or be treated as excess parachute payments.
In this practical webinar, you will learn from a critical analysis of IRS Section 457(f) regulations, identify implications of tax reform, and receive guidance on opportunities and limitations in structuring executive compensation plans for tax-exempt organizations.
Upon course completion, you will be able to:
- Define IRC Section 457
- Outline exceptions to Application of 457(f)
- Recognize the interaction between 457(f) and 409A guidance
- Identify substantial risks of forfeiture and deferred compensation, including:
- Noncompete covenants
- “Rolling risk of forfeiture”
- Separation Pay Plans
- Evaluate practical applications of 457(f) regulations
- Identify other tax reform provisions affecting employ benefits at tax exempt organizations
- Describe the 21 percent excise tax on payments over $1,000,000 or excess parachute payment, including:
-
- Who is a covered employee?
- What is an excess parachute payment?
- Who is an applicable tax-exempt organization?
- Plan vesting schedules and timing of cash payouts
- Determine when deferral of current base salary is permitted
- Evaluate whether a plan falls under both 409A and 457(f)
Prerequisites: None
Program Level: Intermediate
Field of Study: Taxes – Technical
Marc Fosse
Mr. Marc Fosse focuses on all the tax, securities, corporate, and accounting issues related to executive and equity compensation arrangements. He works with publicly traded, private, non-profit and government clients in the design, implementation, and operation of domestic and international executive nonqualified and supplemental deferred compensation plans, as well as equity-based and other long-term incentive compensation arrangements. He regularly advises clients regarding handling of employee benefit matters in corporate mergers, acquisitions, divestitures, initial public offerings, and other corporate transactions.
Josephine Gartrell
Josephine Gartrell, Director, Talent & Rewards, has over twenty years of experience specializing in compensation strategy and design in tax-exempt organizations. She co-leads Willis Towers Watson’s higher education talent and rewards practice and heads the practice group’s NCAA athletics division. She works with Boards of Trustees/Regents, committees of the Board, athletic directors, and other senior leadership to design compensation strategies that align with achievement of their performance goals. Ms. Gartrell has deep technical knowledge related to compensation, including executive compensation; benchmarking for enterprise shared services positions; benchmarking for coaches, assistant coaches, athletic directors, and staff; short-term and long-term incentive plan design; buy-out/severance agreements; retention; prevalence of benefits and perquisites; deferred compensation; retirement; total compensation philosophy; governance; compliance issues; and reasonableness of executive pay. She also assists with employment agreement/extension negotiations and drafting. She holds a J.D. from the University of San Diego School of Law. She is a Certified Executive Compensation Professional, and a member of [email protected]
CLE Credits (Law)
| Credit | Value | Type | Format |
|---|---|---|---|
In some CLE states, the course will be submitted to the bar after you register. If for any reason the course is not approved, we will fully refund your registration fee. If a state is listed on this course, then we are confident the course fits that state's standards and already is or will be approved for credit.
Accounting Credits
| Credit | Value | Field of Study | Format |
|---|
Clear Law Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. For more information regarding administrative policies such as complaint and refund, please see the tab above on our Money-Back Guarantee or contact us at 703-372-0550.
CPE Credit - Maximum Credit Hours: Please see above. You must attend at least 50 minutes to obtain credit. Fields of Study: Please see above. Teaching Method: Lecture. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state’s regulatory board.
Clear Law Institute has registered with the Texas State Board of Public Accountancy as a CPE Sponsor. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.
What is a webinar?
A webinar is simply a seminar that you attend online. You either watch a live video feed of the speaker or listen to the speaker through your computer, tablet or phone’s audio. You see the speaker’s slides, videos, and other presentation materials on your screen.
Can I ask questions during the webinar?
Yes. During the live webinar, you may submit questions and comments and the speaker will respond verbally. For a recorded webinar, your questions will be emailed to the speaker. You will typically receive a response from the speaker within two business days.
Can I attend using a tablet or smartphone?
Yes. You may attend a webinar using a computer, tablet or smartphone.
If I can’t attend a webinar live, can I view the recording later?
Yes. Shortly after each live program ends, we send all webinar registrants a link to the webinar recording. You can view the recording as many times as you like after the live webinar for up to 12 months.
What is an on-demand webinar?
An on-demand webinar is a previously recorded webinar that you may view at any time after your purchase for up to 12 months.
Can I stop a recorded webinar and start it later at the same point?
You can stop a recording and later log back in and navigate to any point in the webinar. The system will not force you to view the entire recording from start to finish.
Can I listen to recorded webinars on a tablet or smartphone?
Yes. You will be able to listen to any of our on-demand webinars on your computer, tablet, or smartphone.
Do the webinars qualify for Continuing Education Credit?
Almost all of our webinars are approved for continuing education credit, including CLE (in all states), CCB, CPE, HRCI, IRS and SHRM credit. Unlike many providers, we don’t charge you any additional fee to process your credit. If you have specific questions, please call us at 703-372-0550 or contact us.
Can I still receive Continuing Education Credits if I view the webinar recording instead of the live presentation?
In most cases, the answer is yes. Recorded webinars are not eligible for CLE credit in the following states: AR, KS, MS, NE, and RI. In all other jurisdictions, recorded programs are eligible for credit. In addition, CPE credit is not available for recorded webinars. Please note that recorded webinars are only eligible for a certain period of time based on the jurisdiction. To ask about your specific type of Continuing Education Credit or the requirements in your jurisdiction, please call us at 703-372-0550 or contact us.
Will I receive a certificate of completion after the course?
Yes. A certificate of completion will automatically be uploaded to your Clear Law Institute account after completing the live or on-demand webinar.
Do I need to be a member to receive a certificate of completion?
No. An account will automatically be created for you when registering for a webinar. You will then be able to access your certificate of completion after completing a webinar.
How do I determine my states’s CLE requirements.
Please find your state listed here with instructions for calculating the number of credits in your state.
How will I submit my attendance to receive CLE credit in my state?
Please find your state listed here with instructions for confirming your CLE attendance.
How does the money-back guarantee work?
Clear Law Institute stands behind all of its courses with a no-risk, money-back guarantee. If you are not satisfied with the quality of a webinar, we will fully refund your money—no questions asked. If you purchase an annual all-access membership, you can cancel within 14 days for a full refund.
100% of attendees recommend this webinar
4 out of 5 stars
from 1 customer reviews
4 out of 5
Mary D.