NAFCU Reports IRS to Publish Deferred Compensation Study in 2006

ARLINGTON, Va. – A study on deferred compensation from the IRS is scheduled for release in 2006. NAFCU, citing information from BNA Banking Report, said the study will look at how the plans are treated at tax-exempt organizations. While the report won’t be targeted directly at credit unions, the IRS is not excluding them from an ongoing project the agency has conducted on tax-exempt organizations, said Carrie Hunt, NAFCU director of regulatory affairs during a Dec. 5 press call. Hunt said NAFCU, which has provided guidance to the IRS on the treatment of 457(f) and (b) plans, will continue to monitor the agency’s progress. On a related matter, Hunt said NAFCU supports a NCUA Nov. 18 opinion letter involving the clarification of payout priority of deferred compensation claims in involuntary liquidations. In the letter, NCUA said deferred compensation is not included in the “wages and salaries” category but is included in the category for general creditors and secured creditors to the extent their respective claims exceed the value of their security.