Mastering IRC 457(f): Guidance for ERISA Counsel in Structuring Deferred Compensation Plans for Nonprofit Entities
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide employee benefits and ERISA counsel with a thorough and practical guide to deferred compensation for nonprofit and exempt organization executives and employees. The panel will discuss critical changes in tax reform impacting the structuring of deferred compensation plans and define additional opportunities and challenges for exempt organization directors and professionals.
Outline
- Introduction to IRC Section 457
- Exceptions to application of 457(f)
- Interaction between 457(f) and 409A guidance
- What are substantial risk of forfeiture and deferred compensation
- Noncompete covenants
- "Rolling risk of forfeiture"
- Separation pay plans
- The 21% excise tax on payments over $1 million or excess parachute payments
- Who is a covered employee
- What is an excess parachute payment
- Evaluating practical applications of 457(f) regulations
Benefits
The panel will review these and other key issues:
- Analyzing the new rules that trigger the 21% excise tax on compensation in excess of $1 million or excess parachute payments to covered employees
- Noncompete covenants regarding whether a substantial risk of forfeiture exists
- Planned vesting schedules and timing of cash payouts
- When is deferral of current base salary permitted
- Evaluating whether a plan falls under both 409A and 457(f)
- Opportunities and limitations in structuring compliant executive compensation plans for nonprofit organizations
Faculty

J. Marc Fosse
Director
Trucker Huss
Mr. Fosse focuses on all the tax, securities, corporate and accounting issues related to executive and equity... | Read More
Mr. 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 employee benefit matters in corporate mergers, acquisitions, divestitures, initial public offerings and other corporate transactions.
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Andrew L. Oringer
Partner
Dechert
Mr. Oringer is co-chair of his firm's ERISA and Executive Compensation group, and leads the firm’s... | Read More
Mr. Oringer is co-chair of his firm's ERISA and Executive Compensation group, and leads the firm’s national fiduciary practice in New York. He counsels clients on their employee benefit plans and programs, benefits-related tax matters and fiduciary issues arising in connection with the investment of employee benefit plan assets. His practice includes advising clients regarding ERISA and employee benefits generally, including 401(k) and other retirement plans as well as medical and other welfare plans. His advice to clients encompasses all aspects of corporate transactions and initial public offerings in which benefits and compensation issues play a central part.
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Stefan P. Smith
Partner
Locke Lord
Mr. Smith has extensive experience in employee benefits and executive compensation law. He works with both public and... | Read More
Mr. Smith has extensive experience in employee benefits and executive compensation law. He works with both public and private entities to establish and ensure the continued compliance of tax-qualified defined contribution and defined benefit retirement plans, including 401(k)/profit sharing plans, traditional defined benefit plans, money purchase plans, employee stock ownership plans, and cash balance plans. In addition, he assists with employee benefit matters arising during mergers and acquisitions and works with all forms of health and welfare plans and executive and equity-based compensation, including incentive and non-qualified stock options, restricted stock awards, stock appreciation rights, employee stock purchase plans, phantom equity, performance unit and bonus plans, SERPs and other excess benefit plans, and non-qualified deferred compensation plans.
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