Dual-purpose retirement/section 105(c) disability plans
Article Abstract:
The feasibility of dual purpose plans has been debated by pension experts since the 1970s. Tax attorneys have wanted to develop an individual plan which incorporated the retirement plan of the Internal Revenue Code (IRC) 401(a) and the accident and health plan 105(C). The singular plan would, in effect, defer income taxes until retirement and forego taxes altogether in the event of a lasting disability. A 1997 decision by the California State Tax Board has served to further confound the situation by declaring that a qualified retirement plan cannot be considered an accident and health plan under IRC 105.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1998
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New 401(k) rules for current- and prior- year testing
Article Abstract:
The introduction of new laws such as the Taxpayer Relief Act of 1997 and the Small Business Job Protection Act of 1996 has significantly impacted the management of 401(k) retirement plans by firms. The most pronounced changes include the revocation of excess distribution excise taxes, the postponement of required distributions from participants 70 years of age, and the abolition of family aggregation rules. Managers must be made aware of the corresponding changes and prerequisites of changing from current- to prior-year testing plans.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1998
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Recent developments
Article Abstract:
Two ERISA-related developments of concern to plans sponsors and administrators are reported. The first is the US Supreme Court's ruling on the 'Varity Corp. v. Howe' case which permits individual plan participants to sue plan fiduciaries for breaches of fiduciary obligations. The second is the Pension and Welfare Benefits Administration proposal to offer a class exemption from some ERISA and IRC rules relating to remittance of employee plan contributions.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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