Top Articles - Finance

The American Jobs Creation Act of 2004 imposed strict new rules on non-qualified deferred compensation plans. Be

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wa

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ges, slapped with a 20% excise tax, plus charged an interest penalty.

Given the potentially huge tax consequenc

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

s for non-compliance with the rules, you should consult with your organization’s benefit specialist and your tax

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

professionals to figure how your compensation might be affected by these new rules.

Deferred compensation plan

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

s are often used to provide for the deferral of salary, incentive compensation (i.e., commissions or bonuses), o

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

supplemental compensation for top executives, independent corporate directors, and individual board members. Th

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

e new rules apply to nonqualified deferred compensation plans at taxable and tax-exempt organizations.

An optio

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

n for independent corporate directors and individual board members who receive 1099 income for their services ma

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

consider is to freeze their nonqualified plan and adopt a qualified plan such as the “one person defined benefi

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

t plan”, called the Solo-DB Plan. Qualified retirement plans are exempt from the requirements of the American Jo

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

bs Creation Act.

The Solo-DB plan allows the highest deductible contributions possible in a qualified retiremen

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

plan. For example in 2005 one can contribute up to $170,000 of compensation into a tax-deferred Solo-DB plan.

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

Defined benefits plans have been around for a long time. But, recent pension legislation has raised the contribu

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

tion and deductibility limits as well as simplified plan fund requirements. Thus, defined benefit plans like Sol

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

-DB have become much more attractive to upper-income individuals with self-employment income. The Solo-DB plan w

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ill allow you to aggressively fund your retirement while cutting your taxes significantly.

Individuals who qual

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ify for the Solo-DB plan include sole proprietors, independent contractors, and small business owners age 45 or

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

lder who can contribute more than $41,000 annually to the plan for at least three years.

For more about Solo DB

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

plans visit Lamaute Capital at: http://www.InvestSafe.com

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.toparticles.org.ua/article/104620/toparticles-Protecting-the-Tax-Advantage-of-Your-Deferred-Compensation.html">Protecting the Tax Advantage of Your Deferred Compensation</a>

BB link (for phorums):
[url=http://www.toparticles.org.ua/article/104620/toparticles-Protecting-the-Tax-Advantage-of-Your-Deferred-Compensation.html]Protecting the Tax Advantage of Your Deferred Compensation[/url]

The population count for Miami has about doubled for Super Bowl weekend. The historic Art Deco streets of South Beach have been shut down only allowing for the flood of pedestrians walking the sidewalks to overflow onto the streets.

Brands are important aspects of any business, but unlike money or bricks, mortar and paperclips, a brand is an intangible aspect of business. It lives in people’s heads and is defined by all of that person’s contacts with a company. Improving a brand is, therefore, one of the best marketing tools available because it involves your whole company and in the end, creates happier customers, more loyalty and higher marketshare.

If you are in the sales profession and do sales yourself there is no doubt that you will do some of your business by telephone, it is inevitable. It is for this reason that salespeople should discuss teleselling and all the various aspects. We should be discussing the new telemarketing laws, which have changed the industry for ever and how your company no matter what size can benefit from incoming telemarketing. Selling on the telephone is much different, but it is also much more efficient especially when prospecting or cold calling.

Tags

Links

Top Articles - Protecting the Tax Advantage of Your Deferred Compensation

Related Articles: