IRS can disqualify profit sharing plan without closing agreement
Article Abstract:
The US Tax Court recently upheld the IRS's decision to retroactively disqualify Ace Machine Co.'s profit sharing plan and impose an income tax on its lump-sum distributions even though the distributions were properly rolled over to individual retirement accounts by employees. The court dismissed the company's claim that the IRS abused its discretion by failing to inform it about the opportunity to correct the flaws of its profit-sharing plan through the Closing Agreement Program.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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Legal pitfalls in welfare benefit plan documentation
Article Abstract:
Documentation of welfare benefit plan is one of the most intricate aspects of human resource management. The work entails monitoring administrative expenses, orienting participants about plan coverages and providing up-to-date summary of all upcoming benefit programs. To prevent massive financial losses arising from legal charges, companies are advised to designate their third party administrators as a fiduciary of ERISA and inform employees about existing eligibility rules.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1999
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