Waiver of accrued pension benefits results in taxable distribution to participant
Article Abstract:
The Tax Court ruled in Gallade v. Commissioner that a defined benefit plan participant and sole shareholder of the employer must recognize income on the termination of the plan and distribution of assets despite waiving his right to accrued vested benefits. The IRS and the Tax Court both found that the waiver was a violation of anti-alienation provisions, but both failed to consider regulations that allow participants to direct benefits to third parties. In this case, the third party would have been the corporation, which was in need of funds for expansion.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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Antenuptial agreement does not constitute effective waiver of spouse's right to receive plan benefits of deceased
Article Abstract:
A federal district court in Hurwitz v Sher denied the son of the deceased the retirement benefits his father had clearly wanted him to receive because the deceased failed to have his spouse sign a valid waiver accepting the son as recipient of the benefits. The son was seeking a court ruling that the waiver contained in an antenuptial contract signed by the surviving spouse was valid. The court found that the antenuptial contract did not meet the three standards for a valid waiver of benefits.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1992
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Court interprets OWBPA requirements for valid ADEA waiver
Article Abstract:
A federal district court held in Carr v. Armstrong Air Conditioning, Inc that a severance agreement the plaintiff entered into failed to satisfy the requirements of the Older Workers' Benefit Protection Act of 1992 (OWBPA). OWBPA requires a valid waiver of claims under the Age Discrimination in Employment Act of 1967. The waiver in Carr was held to be invalid because it was not knowing and voluntary.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1993
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- Abstracts: Circuits are split on contribution issue. SEC adds to compliance officers' duties. SEC targets false revenue reports; in its sights are tech companies that failed to observe proper accounting rules
- Abstracts: Consolidated arbitration: will it result in increased efficiency or an affront to party autonomy? Arbitration in the energy/minerals field: customizing the clause
- Abstracts: Permanent life insurance benefit in connection with s. 403(b) contract considered incidental. IRS issues private letter rulings on secular trusts
- Abstracts: Retirement plan benefits: what are the spouse's options? Estate planning to avoid complications of remarriage
- Abstracts: Executive stock deals affected; sec. 16 changes. SEC, Congress address executive pay. Rule changes proposed by the SEC would allow directors to delegate duties to foreign custodians and would offer a safe harbor for wrap-fee investment plans