ObamaCare and Nonqualified Deferred Compensation – A New Article from the American Benefit Corporation

Share Article

The importance of Executive Nonqualified Deferred Compensation in a second Obama administration with the proposed increased taxes.

News Image
ObamaCare and Nonqualified Deferred Compensation

American Benefit Corporation’s Jim Herlihy has just released a new article discussing nonqualified deferred compensation in a second Obama administration.
"Income taxes are going up. Executives do have the option, however, to reduce their taxes by deferring income to an employer-sponsored nonqualified deferred compensation plan." The proposed tax increases include:

1. The previous top income tax rates of 36% and 39.6% will be restored.

2. Capital gains rates will increase from 15% to 20% in 2012 and 23.8% in 2013 for joint filers with income over $250,000.

3. In 2013, all or part of the net investment income for individuals earning over $250,000 will have an additional 3.8% “Medicare contribution tax”. Therefore, the maximum rate on dividends will be 43.4% (39.6% + 3.8%) versus the current rate of 15%.

4. In addition, many state income taxes, tied to the federal tax rate, will increase automatically. While other states, feeling considerable fiscal pressure, have already increased their tax rate or are currently giving it consideration. All of these tax increases, depending on the state of residence, will put many high earners in a marginal tax bracket in excess of 50%.

The table below summarizes the proposed changes - Please read the entire article here.

About Us - At American Benefit Corporation, we design, fund and manage executive non-qualified benefit plans for highly compensated corporate executives who wish to reduce current income taxes and form personal capital on a tax efficient basis. Established more than 30 years ago, we serve the unique needs of executives in numerous corporations with their personal capital formation objectives.

This material is intended for informational purposes only and is not intended to replace the advice of a qualified tax advisor. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. American Benefit Corporation is independently owned and operated.

Share article on social media or email:

View article via:

Pdf Print