As part of the agreement stemming from the "fiscal cliff" negotiations, Congress adopted tax changes in 2013 that could bring challenges for non-profit organizations and their senior executives and management staff. Executive compensation has always been a complex issue, and these new tax increases may present a greater need for executives and management staff to reduce their includable compensation to offset some of the anticipated tax increases.
Tax changes taking effect this year that will likely affect highly compensated individuals include:
- an increase in the highest, marginal tax bracket to 39.6%, up from 35%;
- significantly reducing the impact of deductions for mortgage interest, state and local income taxes, property taxes, and charitable contributions; and
- an increase in the long-term capital gains and dividend taxes.
If you sponsor a 457(b) plan, now would be a great time to promote its usage, expand its availability, or make your senior management aware of the potential value of this plan.
For questions, contact SBS at (855) 882-9177 or email us at firstname.lastname@example.org.
Labels: Retirement Advisory Services