IRS approves hybrid s. 457 eligible/ineligible deferred compensation plan

Article Abstract:

An IRS approved IRC section 457 hybrid deferred compensation plan combining arrangements from section 457(b) eligible plans and section 457(f) ineligible plans is discussed. IRS Private Letter Ruling 199916037 concerned elective and nonelective arrangements in a deferred compensation plan benefiting employee physicians. The lack of forfeiture risk and creditors' ability to reach the funds were determining factors.

Tax Law, Deferred compensation

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IRS approves 100% deduction of health insurance costs for self-employed business owners if the owner's spouse is employed by the business

Article Abstract:

This article describes an IRS Coordinated Issue Paper which states that a full IRC section 162 deduction may be taken for expenses incurred by self-employed persons in providing health and accident insurance to their spouse-employees. The spouses would not include such benefits in their income under sections 105(b) and 106.

Direct Health and Medical Insurance Carriers, Hospital and medical service plans, Medical Care Insurance, Self-employed persons, Health insurance, Husband and wife, Self employed persons, Husband-wife relations, Insurance

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Payment of plan expenses by plan sponsor does not constitute contributions

Article Abstract:

This article concerns the Tax Court's allowance in a 1999 case of the IRC section 162 business expense deduction for litigation costs incurred by an employee benefit plan sponsor in litigation involving the plan. The expenses were not indirect plan contributions under deduction limitation section 404 .

Costs (Law), Legal fees

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