Securing non-qualified deferred compensation plan benefits with a group annuity contract is not constructive receipt

Article Abstract:

The IRS ruled in PLR 9713006 that an employer's proposed funding of a nonqualified deferred compensation plan with a group annuity contract would not trigger recognition of income by the employees under the economic benefit doctrine. The IRS found that since payment of benefits could only be triggered by termination of employment the funds were still subject to a substantial risk of forfeiture. A compensation deduction would be available to the employer in the year that the plan participant included the funds in income.

Deferred compensation

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Tax-deferred annuities vs. 401(k) plans - the choice is yours

Article Abstract:

Nonprofit organizations and public educational institutions will be able to offer employees IRC section 403(b) tax-deferred annuity plans, 401(k) plans or both plans, beginning in 1996. Tax-deferred annuity plans are not qualified plans so ERISA record-keeping is not required, but they are subject to maximum exclusion allowance rules. 401(k) plans offer greater investment flexibility and are subject to clearer compliance guidelines, but violations of ERISA can subject 401(K) plans to plan disqualification.

Religious, Grantmaking, Civic, Professional, and Similar Organizations, Nonprofit Institutions, Compensation and benefits, Nonprofit organizations

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Taxpayer Refund & Relief Act of 1999 contains pension provisions

Article Abstract:

Pension law reform which is likely to occur after the presidential veto of the Taxpayer Refund and Relief Act of 1999 is the focus of this article. The author discusses provisions in that vetoed act which are included in H.R. 1102, the Portman-Cardin bill, and which have bipartisan support.

United States, Tax Law, Public Finance Activities, Laws, regulations and rules, Retirement benefits

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