Simplified employee pensions: they offer an easy way for a small business to set up a retirement plan
Article Abstract:
The Revenue Act of 1978 is the statutory basis for simplified employee pensions (SEPs), qualified employee benefit plans which allow the employer to contribute directly to employees' individual retirement accounts (IRAs). Small employers do not benefit from the same economies of scale available to larger employers in maintaining employee benefit plans, but SEPs can make it easier for them to provide required, comparable benefits. Employer SEP contributions cannot cut the cost of a plan through delayed vesting as they might in pension or profit-sharing plans, and the employer may not forbid withdrawals from a SEP. Small businesses have been slow to adopt SEPs, possibly because 100% coverage is required for employees, or perhaps more likely because SEPs have not been marketed aggressively by securities dealers, brokers, mutual funds, or the insurance industry.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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Pensions: Most Opposed Controversial Proposals at FASB's Public Hearing
Article Abstract:
Most of the opinions concerning the Financial Accounting Standards Board's (FASB's) pension were negative. Sixty opinions of organizations and individuals were heard at the public hearing on January 11-13, 1984. Opposition mainly centered around the proposal of net pension liability or asset inclusion on corporate balance sheets. Whether pensions fit the definition of a liability is a problem in reaching agreement. The inclusion would make balance sheets misleading. Most agreed that pension funds needed to be accounted for in financial records, but disagreed with the methods proposed by FASB.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1984
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Pensions: The Surprise Package in Corporate Marriage
Article Abstract:
Pension plans are sometines overlooked in targeting acquisitions. They are important and expensive employee benefits whose alternatives the acquisitor should consider. The acquisitor may continue it on an ongoing basis, freeze it at the current level or terminate it. Unfunded or termination liabilities may exist, as may hidden liabilities due to tax disqualifications. Termination is the simplest from an accounting view. Ramifications should be considered early in the negotiations.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1984
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