How Credit Unions Can Avoid or Minimize the 21% Nonprofit Excise Tax

The 2017 Tax Act included provisions that could impose a 21% excise tax for certain nonprofit institutions, including credit unions. Credit unions could be subject to the tax if they pay more than $1 million in income to an executive in one calendar year. While many executives may not meet that threshold in salary alone, the law also factors in executive benefits such as 457(f) distributions, which could pose significant tax implications for credit unions. Doug welcomes attorney Rick Miller to the show to discuss this and other situations in which the tax would be payable and offers strategies to help credit unions avoid or mitigate the tax impact. Stream the full episode now.