The Long Goodbye: Tax Issues for Executives Transitioning Into Retirement

Bloomberg BNA Compensation Planning Journal


In this article, Thomas Cryan and Anthony Provenzano discuss the various tax issues companies face when establishing executive retirement transition plans, including the implications of worker classification, deferred compensation, employee benefits, fringe benefit, and payroll tax issues.  "Tax departments should get involved with their company's Human Resources department as soon as possible to structure an executive's transition into retirement. Tax, more than HR, will bear the anger if the executive, expecting a Form 1099 receives a W-2 instead, which will happen if retirement distributions begin earlier than planned. In many cases, HR may need further education on many of the issues in order to manage an executive's expectations," the authors wrote.