If your plan fails to meet the new requirements, all of the deferred compensation is currently taxable. For that reason, employers who were “hands-off” on this issue before must become “hands-on” now … or their employees will face the negative tax consequences.
Good news: The IRS is granting you more time to comply with the strict new rules. Originally slated to take effect in 2005, the new proposed regulations push back the effective dates of most provisions to Jan. 1, 2007. (NPRM-REG-158080-04)
While you have until the end of this year to get your house in order, don’t dillydally. There’s plenty to do in the meantime. ...(register to read more)
- Small Business Tax Deduction Strategies No matches