The Service seeks increased enforcement of tax-sheltered annuities
Article Abstract:
Tax-exempt organizations offering IRC section 403(b) tax-sheltered annuity plans to their employees should review their plan for compliance with contribution limits, nondiscrimination tests, distribution rules and reporting requirements. Contribution limit calculations must be integrated with other benefit plans offered by the employer. Information returns must be filed annually on Form 5500 unless the employer meets exemption criteria. The IRS is increasing its scrutiny of 403(b) plans, but the Voluntary Compliance Program may be opened to employers in the near future.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Plan distributions to nonresident aliens
Article Abstract:
Tax issues concerning profit-sharing and pension plan distributions to non-resident aliens are discussed. A distribution requires that some event has occurred such as separation from the company. However, US law maintains that separation per se is insufficient and there are provisos concerning projectable employment with affiliates. International treaties exist concerning pension taxation, and if none supercedes, the distribution is taxable as US income.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
New direct rollover and withholding rules require plan amendment
Article Abstract:
Pension or annuity plans must be amended to accommodate the new rules for withholding and direct rollover. The rules cover rollovers under IRC section 402(c)(4) or annuities under IRC section 403(b). A direct rollover option must be included in a plan to avoid a 20% distribution withholding. Distributees of the plan must receive a required notice and rollovers must be reported on Form 1099-R.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The Delaware tax trap and the abolition of the rule against perpetuities. Alaska enacts additional estate planning legislation
- Abstracts: Roundtable conference with enforcement officials
- Abstracts: Fast facts vs. file stacks; case management software saves time - and trees. 'May I see your license?': with business piracy on the rise, software police are an the trail
- Abstracts: This GC's advice is always in fashion. Lots of litigation. A new life in Montana was a nice thought
- Abstracts: The Securities Litigation Reform Act's safe harbor for forward-looking statements would deter fraud suits against companies