New Developments in Legislation, Regulations and Informal Agency Positions
Article Abstract:
Professionals review recent developments in federal legislation and regulation with emphasis on informal agency positions. The Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation (PBGC) are closely examing 'spin-off ' techniques for recovering excess assets as relative to retired employees' benefits. Hardship distributions on certain events such as purchase of a principal residence are likely to be included in a hardship rule in the final draft of Internal Revenue Code (IRC) section 401(K) regulations. Questions exist regarding rescinding section 242 (b) (2) and the authority of the IRS in viewing a revocation of an election as being retroactively effective. The safe harbor concept as applied to top-heavy employee benefit plans is described. Section 401(K) has not been expanded to include money purchase pension plans. IRS offices are printing letters on specific plans under TEFRA but are not issuing opinion letters approving master and prototype plans. Section 401(K) plans do not negatively affect employees' social security benefits. A better definition is needed to determine who are considered officers of the employer for purposes of top-heavy plans. The IRS is developing a revenue ruling to illustrate when making section 401(K) plans would be non discriminatory although the contributions are not proportionate to compensation.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1984
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New Developments in Legislation, Regulations and Informal Agency Positions
Article Abstract:
Internal Revenue Code Section 422a furnishes stock option rules called incentive stock options (ISO). Only temporary rules have been promulgated under ISO, but regulations have not yet been furnished at large. They are expected to be issued soon. Issues revolving around voluntary employee beneficiary associations (VEBAs) have been channeled from district offices to the national office in an effort to set consistent policy. Issues of concern are the constitution of an association by single employees for the purposes of forming a VEBA, and the possibility of disproportionate benefits in small plans, and members geographic distribution. Congress is quite interested in legislating womens' pension equity bills. Versions in both the House and the Senate provide for benefits of the employed spouse's plan to apply to divorced non-working spouses. Death provisions of non- payment must be analyzed more carefully. A letter ruling from mid-1983 allows the deferral of lump-sum distribution by recipient election until after retirement and treats it as qualified for ten year averaging. Temporary regulations have been issued for back-up withholding.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1983
User Contributions:
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- Abstracts: New Developments in Legislation, Regulations and Informal Agency Positions. Washington Items: New Developments in Legislation Regulations and Informal Agency Positions
- Abstracts: American Brands, Inc. Incentive Stock Option Plan. Model Selection 401(K) Plan. Proposed Class Exemption on Incentives to Establish IRAs and Keoghs