Section 404(a)(7) limits applied separately to employers in controlled group

Article Abstract:

The IRS ruled in PLR 9626046 that the IRC section 404(a) limits placed on contributions made to a controlled group's benefit plans do not need to be calculated by including employees of controlled group members not participating in the benefit plans. Section 404(a) places annual limits on deductions for contributions to benefit plans. Members of a controlled group participating collectively in benefit plans are treated as one employer for purposes of section 404(a) testing, but contributions to individuals employed by non-participating group members are not factored in.

Compensation and benefits, Affiliated corporations

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Patterson v. Shumate: a five-year legacy

Article Abstract:

The US Supreme Court established in Patterson v. Shumate that certain retirement plan funds are excluded from the debtor's bankruptcy estate, but courts interpreting that 1992 decision have had difficulty determining which plans qualify and when. Unlike exempted property, excluded property is never part of the bankruptcy estate, making the applicability of Patterson valuable. The Court's decision focused on interpreting section 541(c)(2) of the Bankruptcy Code and did not adequately address its interaction with the Internal Revenue Code and ERISA.

Interpretation and construction, Bankruptcy law, Bankruptcy estates, states

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DOL finds voluntary severance program is an ERISA pension plan

Article Abstract:

A university voluntary employee severance plan was found by the US Labor Dept. (DOL) to be an ERISA pension plan which must comply with ERISA disclosure, fiduciary, and procedural rules. The DOL in Advisory Opinion 99-01A would not treat the plan as a welfare benefit plan because of several factors including its not falling within relevant DOL safe harbor regulation requirements.

United States, Severance pay

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