Minimum participation requirements eased by new nondiscrimination Reg. package
Article Abstract:
IRS Proposed Regulations continue the requirement that qualified benefit plans cover a minimum of 50 employees or, if fewer, 40% of the workforce. However, the Proposed Regulations have substantially moved away from the separate benefit concept structure. By moving away from the separate benefit concept structure, the Proposed Regulations make application of non-discrimination tests easier. Prior Proposed Regulations separated a plan into benefit structures that treated any separate benefit structure as a separate plan that had to meet minimum participation rules. The Proposed Regulations apply different testing rules to defined benefit plans and defined contribution plans and posits five exceptions where testing is not required, providing relief where testing would have been meaningless, difficult, or both.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
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Nondiscrimination, minimum coverage rules modified
Article Abstract:
The IRS has issued Proposed Regulations that modify proposed rules for qualified plans pertaining to nondiscrimination and minimum coverage. In addition, the Proposed Regulations clarify safe harbors and elucidate alternative restructuring methods. Safe harbors for defined contribution and defined benefit plans can be used for plans with limits on compensation or service. Plans can be restructured into component plans that satisfy requirements on nondiscrimination and minimum coverage separately. employee stock option plans are required to be aggregated with other qualified plans for the purpose of conducting the average benefit percentage test.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
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Recordkeeping rules eased for home day care providers
Article Abstract:
The IRS has ruled that home day care providers no longer need to maintain detailed records on when rooms are actually used in providing day care services. According to new IRS guidelines, day care providers simply have to prove that a room is regularly used for day care service and that it is available for such day care service for the entire duration of a business day. The guidelines, specified in Rev Rul 92-3, clarify the rules covering the use of residences for the provision of day care services and also specify how household expenses may be qualified as business expenses incurred in the provision of home day care.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1992
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