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Client Bulletin

Retirement Plan Experts Warn of Five Dangerous Trends To Affect Nonqualified Deferred Compensation Plans in §409A Climate

Dr. Arthur Laffer, Bill MacDonald Offer Downloadable Quick-Action White Paper

San Diego, CA, March 27, 2008 - Retirement Capital Group, Inc. (RCG) warns plan sponsors and executive plan participants that their nonqualified deferred compensation plans will be weakened with the arrival of IRC Section §409A, which places limitations on plan flexibility and wealth accumulation.

On October 22, 2007, Internal Revenue Service (IRS) Notice 2007-86 granted an additional one year extension to December 31, 2008 to comply with IRS §409A. However, companies and executives may be "running out of time to take advantage of new strategies to improve their retirement outcomes," cautions William MacDonald, Chairman and CEO of Retirement Capital Group.

Noted economist, Dr. Arthur Laffer, Vice Chairman of RCG, and Mr. MacDonald have researched and authored a comprehensive white paper entitled, The Five Most Dangerous Trends Impacting Nonqualified Deferred Compensation Plans After §409A. The 30-page document is downloadable here, along with a shorter Executive Summary for those whose schedules restrict the luxury of reading. In essence, the paper offers workable approaches to legislative restrictions, and introduces the new Executive Roth PlanSM, as an alternative to traditional nonqualified deferred compensation plans.

Dr. Laffer and Macdonald urge employers and executives to follow appropriate guidelines of §409A and quickly consider a thorough review of current plans to ensure compliance by January 1, 2009. "There can be no margin for error in meeting final regulations," emphasizes Macdonald.

About RCG

RCG offers nonqualified executive benefit consulting services on plan structure, design, benefit security, funding, implementation, and administration. RCG's unbundled approach provides companies access to proprietary solutions, top-tier advice and a network of third-party administrators. RCG serves leading public and private corporations and non-profits nationwide.

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