New Developments in Legislation, Regulations and Informal Agency Positions
Article Abstract:
Active tax practitioners describe current items of significance to taxpayers. Items highlighted are, 1) new master and prototype plan procedures, 2) cafeteria plan regulations, 3) qualified plan asset managers (PAM) exemption, 4) union-sponsored insurance and unrelated business income, 5) plan asset regulations, 6) junior stock treatment, 7) mass submitter program, 8) voluntary employee beneficiary associations (VEBA), 9) incidental death benefit limits for life insurance plans, and 10) the Internal Revenue Service (IRS) position in Looney v. United States. VEBAs obtain tax-exemption under Internal Revenue Code (IRC) Section 501 (c)(9). The IRS is moving toward less flexibility for issuing approvals and is likely to deny many applications. The Labor Department is working on a final set of plan asset regulations which will require more diversification of assets as well as investments.
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:
Topics deemed significant and current include: 1. treatment of death benefits in top-heavy calculation, 2. constructive receipt for tax sheltered annuities, 3. qualified voluntary employee contribution (QVEC) plans, 4. stock option plans (ISOs), 5. Internal Revenue Service (IRS) view on Internal Revenue Code (IRC) Section 3509, 6. predecessor employer service, 7. noncompensatory nature of cancellation of nonlapse restrictions, 8. deductibility of contributions of employer securities, 9. multiple adoption measures for master and prototype plans, and 10. profit-sharing plans for governmental agencies. Many states are studying cash-or- deferred profit-sharing plans (CODAs) for their governmental employees. They are available under IRC Section 401(k). The IRS appears to believe that predecessor employer service should count under IRC Section 12 and Section 415.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1984
User Contributions:
Comment about this article or add new information about this topic: