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Informally fund nonqualified deferred compensationplans If the business has a nonqualified deferred compensationplan for key employees, it may make sense to informally fund that plan in 2023 to ensure the company has the cash flow to meet the future obligation. A few have already been mentioned.
An 83(i) election is an IRC provision that allows certain employees of private companies who receive RSUs or NSOs to defer federal income tax on the exercise or settlement of their stock for up to 5 years. Before 2017, employees who received RSU or NSO equity compensation faced a dilemma.
Additionally, if the donation consists of appreciated securities or assets, the donor can avoid capital gains taxes that would otherwise arise from selling those assets. These taxes can include state and local property taxes, income taxes, and sales taxes.
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