New mandatory withholding and rollover rules for qualified plan distributions

Article Abstract:

The Unemployment Compensation Amendments of 1992, signed into law on Jul 3, 1992, make significant changes in the way qualified plan distributions are taxed and administered. The new distribution rules apply starting in 1993 and state that the rollover option exists for virtually all nonperiodic qualified plan distributions, that qualified plans must allow participants to have rollover distributions transferred directly between plans and that amounts not transferred fall under a 20% withholding rule when distributed.

Distribution, Qualified benefit plans, Rollovers (Finance)

---

Separation from service and the same desk rule: distributions from Section 401(k) plans

Article Abstract:

The IRS has the position that since IRC 401(k) and 402(e) use the same language, the same desk rule applies for the distribution of elective contributions from 401(k) plans, even after the Tax Reform Act of 1986. This position is incorrect and makes plan administration much more complex. The IRC 401(k) distribution rules are really more like the pension distribution rules than the IRC 402(e) lump sum distribution rules. Alternatives which would still comply with the law are considered.

United States, Employee benefits, Salary reduction savings plans, 401K plans

---

Former employee testing under final nondiscrimination regulations: past, present, and future?

Article Abstract:

IRS Notice 92-37, released on Aug 21, 1992, proposes replacing the objective nondiscrimination tests applied to former employees with a standard based on facts and circumstances. This would mean that former employees' benefits could not significantly favor highly paid former employees. This standard would take the place of the 1991 regulations implementing IRC 401(a)(4) and 410(b). The proposed rules would eliminate the uncertainties in the 1991 regulations.

Laws, regulations and rules

Similar abstracts:

• Abstracts: Tobacco litigation-Health and welfare funds. Nonqualified plans for union officials. Claims procedure/exhaustion
• Abstracts: Job satisfaction: it's the little things that count. Guidelines for managing in service businesses. Leadership by example: 'Do as I do'
• Abstracts: Integrate HRIS and payroll. Find new uses for an old HRIS. An HRIS for the '90s
• Abstracts: Checking the facts on a resume. Pitfalls of withholding reference information. Reference checking: the law is on your side
• Abstracts: Tunnel crash inquiry told of signal faults and rescue delays. Channel tunnel builders fined 90,000 pounds sterling

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.