arranged to defer
the receipt of compensation for those services.
Thus, if an FSC defers paying a dividend, the parent's current AMT liability can be minimized.
If the parent corporation is in a continuous AMT situation for the foreseeable future, deferring an FSC dividend defers AMT.
This increase could defer the utilization of any carryover minimum tax credit from prior years attributable to other AMT paid that could otherwise have been used.
As a result of deferring X's bonus, CHC reduces its year-end Federal tax outlay by $11,320 ($17,320 - $6,000) and both defers and lessens the FICA tax impact of the bonus.
There should also be a separate election form on which the shareholder makes the annual election to defer any year-end bonus.
IN ONE EXAMPLE, an employee defers $8,000 of compensation and a $2,000 employer matching contribution, which are invested to earn 8% a year; the cumulative cost to the company over 40 years could be $819,778.
In this case, the employee defers $8,000 of compensation and a $2,000 employer matching contribution, which are invested to earn 8% a year.
457 provides for a nonqualified deferred compensation plan for nonprofit organizations that defers
annual compensation up to the lesser of $7,500 or one-third of includible compensation per employee.