Prenuptial pact did not waive survivor benefit
Article Abstract:
The court ruled in the 'Hurwitz v Sher' case that the death benefits under a qualified plan were not subject to the prenuptial agreement inwhich a couple relinquished all rights to each other's assets. This decision was reached after it was found that the prenuptial agreement did not meet all the requirements necessary for the waiver to take effect. Under Sections 401(a)(11) and 417(a), the husband or the wife of a qualified plan participant is eligible for survivor benefits, which can either be a qualified joint and survivor annuity or a qualified preretirement survivor annuity. Section 417(a)(2) provides that a waiver of the survivor benefit will take effect only if there is a written consent to the election by the spouse, if the consent identifies a beneficiary, and if it acknowledges the election's effects. In the'Hurwitz' case, only the condition that the consent be in writing was satisfied.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Benefit plans are becoming a major consideration in mergers and acquisitions
Article Abstract:
Pension plans are a major consideration in the planning of acquisitions and mergers since the acquired plan can result in either a hidden liability or asset. While it is apparent that surplus assets can be recovered upon the termination of over-funded plans, the Employee Retirement Security Act of 1974 created potential liens against corporate assets for the termination of underfunded pension plans and implemented several and joint liability for pension plans sponsors. Before the acquisition of a business, the acquiring firm should make an analysis of the targeted company's benefit and pension plans before drawing up a letter of intent establishing purchase price and assumption of liabilities. The analysis will make the negotiators aware of potential liabilities, the financial impact of assuming the benefits plans, and which benefits to maintain for the new entity.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
Leasing employees may ease benefit compliance
Article Abstract:
Employee leasing services can still supply companies with the means to minimize cost while maximizing leased employees' benefits in spite of heightened tax regulations. Employee leasing allows service recipients to avoid restrictions imposed by defined benefit pension plans on employee coverage. Temporary or leased employees are given the room to structure their pension trusts and fringe benefit plans to their own needs. Employees are assured of benefits and the simplification of the pension plan's administration and disclosure requirements can be achieved through the proper implementation of employee leasing.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Retirement alone does not change intent. Young developers make their mark. Bosnia's 'city of peace' is promoted by Chicago PR pro
- Abstracts: Analysis of diversification benefits of investing in the emerging gulf equity markets. A comparative analysis of information search and evaluation behavior of professional and non-professional financial analysts
- Abstracts: Steps that will maximize the dependent care credit. Life benefits from insurance may be taxable. Strategies to maximize benefits in leveraged buyouts after TRA '86
- Abstracts: Your Institute - Your Service: What TSD Offers You. Putting TOPP class students into practice. Objective testing in Institute examinations
- Abstracts: An empirical methodology for the ethical assessment of marketing phenomena such as casino gambling