Fixing the broken MSOP
Article Abstract:
Many employers which originally financed their matching contributions to 401(k) plans through employee stock ownership plans (ESOPs) found during the recession of the early 1990s that their ESOPs were too generous and had to refinance them. Such refinancing has to be done with care because of having to meet the prohibited transaction provisions of both ERISA and the Internal Revenue Code. The penalties for running afoul of such provisions can be severe. Providing matching contributions to a 401(k) plan through an ESOP is what is normally called an MSOP.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1995
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Standards of lawyer conduct in employee benefits practice
Article Abstract:
Attorneys who provide services under ERISA should be aware of potential ethical problems. ERISA's fiduciary standards for plan sponsors or beneficiaries may not apply, but they will for attorneys meeting statutory definitions of fiduciaries. ABA Model Code of Professional Responsibility rules should be followed to avoid ethical problems involving ERISA, since ERISA sets few standards beyond prohibiting excessive fees.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1998
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Shadow or nonqualified 401(k) plans
Article Abstract:
Nonqualified 401(k) plans are usually designed as unfunded and used by managers or other high-salary employees to get around ERISA rules and to avoid current taxation. In general, amounts set aside are not subject to income tax until distribution and can thus not be deducted by the employer. Letter rulings the IRS has issued on the subject are discussed.
Publication Name: The Journal of Pension Planning & Compliance
Subject: Human resources and labor relations
ISSN: 0148-2181
Year: 1996
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