ACC-WI July CLE: Deferred Compensation Planning for Management Retention and Business Owner Transition.

Deferred Compensation Planning for Management Retention and Business Owner Transition

Deferred compensation plans can be a remarkable tool to retain and reward executives and management personnel. If properly designed, they can also be used as an effective means of compensating a business owner for transitioning the ownership of the business to its key employees, and in many cases allowing the owner to avoid paying the bulk of FICA tax on compensation received from the plan. Tax law imposes strict requirements on the design of these arrangements, and careful advanced planning is required in order to avoid the high tax penalties imposed if a plan does not meet the strict requirements of the tax code.

During this session, Dan Welytok and Ken Hoogstra from von Briesen & Roper, s.c. will provide an overview of deferred compensation plan uses, tax advantages, common pitfalls, and planning techniques used with deferred compensation plans in order to help give businesses a tool for continued success, including:

1. Types of deferred compensation plans and their traditional uses
2. How deferred compensation plans are funded
3. Legal requirements unique to deferred compensation plans
4. Using deferred compensation planning to transition a business
5. FICA tax considerations
6. Deferred compensation plan use in the public sector
7. Retirement plan adjustments and changes
8. Planning considerations