The attractiveness of a 457(b) plan as compared with a 403(b) plan or a 401(k) plan may vary greatly depending on the circumstances. Read more
Tag Archives: IRA
Comparison of 457(b) Plans, 401(k) Plans, 403(b) Plans, and Deemed IRAs
Navigating Pension and Annuity Payments: General Rule and Taxation Guidelines
(Posted on December 18, 2017 by Carol V. Calhoun)
Employers and those involved in administering retirement plans often do not understand the rules for navigating distributions from such plan. For example, how do the rules for when an employee can take a distribution interrelate with the rules for when an employee is subject to tax penalties on a distribution? Can an employee take a distribution of nontaxable amounts from a plan without also taking amounts subject to tax? How is a distribution initiated by the employer to solve a discrimination issue taxed? Who is taxed, and in what amount, if a distribution is made pursuant to a domestic relations order? What are the tax consequences if a loan is not repaid when due? What is the difference between a rollover of a distribution and a plan-to-plan transfer? For an employee who has a hardship, is it better to take a hardship distribution or a plan loan? Under what circumstances is withholding required, and in what amount? How are distributions reported to an employee? How does the employee report a distribution on his or her income tax return? This live webinar helps those responsible for retirement plans master both withholding and income tax aspects of a wide variety of distribution situations.
The PowerPoint presentation for the webinar is below.
Department of Labor Issues Final Guidance on Investment Advice to Employee Benefit Plans
(Posted on April 8, 2016 by Carol V. Calhoun)
On April 8, 2016, the Department of Labor (“DOL”) issued final guidance dealing with investment advice to ERISA plans and their participants. While this guidance does not by its terms apply to governmental and church plans (which are not subject to ERISA), such plans often use DOL guidance as an indication of best practices which they will follow. Moreover, the DOL suggests that a breach of contract claim may be available to enforce the standards with respect to individual retirement accounts (“IRAs”), which are not subject to ERISA. While the DOL has no authority to regulate governmental and church plans, it has laid out a road map which state courts may use to impose liability on governmental and church plans under a breach of contract theory.
Employee Benefits Effects of Treasury, IRS and Department of Labor Announcements That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes
(Posted on February 23, 2015 by Carol V. Calhoun)
This post was updated on June 26, 2015 to reflect the Supreme Court’s decision in Obergefell v. Hodges, which struck down all state bans on same-sex marriage.
The Treasury Department and the IRS announced on August 29, 2013 that all legal same-sex marriages will be recognized for federal tax purposes. On September 18, 2013, the Department of Labor took the same position for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA“). The announcements and corresponding revenue ruling
Because employee benefit plans are extensively regulated by federal law, this announcement means that all employers will be required to recognize such marriages for many employee benefits purposes. Conversely, employers in states that treat civil unions or domestic partnerships as if they were marriages will nevertheless be forbidden from treating such arrangements as marriages for certain employee benefits purposes. However, the precise impact will depend on whether the plan is subject to ERISA or whether it is a governmental or church plan exempt from ERISA. The chart below sets forth areas in which the announcement will affect the operation of different types of plans.
Chart comparing elective plans updated
(Posted on November 24, 2014 by Carol V. Calhoun)
The chart comparing 457(b) plans, 403(b) plans, 401(k) plans, and deemed IRAs as vehicles for voluntary employee savings has now been updated to reflect recent developments, including new limits for 2015.
Federal Law Update, 2003-2004
(Posted on October 12, 2004 by Carol V. Calhoun)
Speech outline, “Key Legislative and Tax Changes That Impact The Performance Of Your Fund,” now available
(Posted on October 5, 2004 by Carol V. Calhoun)
You can click here to see a copy of the outline for the presentation, given at the 12th Annual Guns & Hoses, the Annual Reunion of the Nation’s Police & Fire Pension Fund Leaders and Their Advisors, on October 5, 2004. Read more
Speech outline, “Eligible 457 Plans: What’s New?,” now available
(Posted on September 10, 2004 by Carol V. Calhoun)
You can click here to see a copy of the outline for the presentation, given at the Eighteenth Annual Advanced ALI-ABA Course of Study: Retirement, Deferred Compensation, and Welfare Plans of Tax-Exempt and Governmental Employers, on September 10, 2004. Read more
Eligible 457 Plans: What’s New?
(Posted on September 10, 2004 by Carol V. Calhoun)
Speech outline, “Governmental Plans Update,” now available
(Posted on September 9, 2004 by Carol V. Calhoun)
You can click here to see a copy of the outline for the presentation, given at the Eighteenth Annual Advanced ALI-ABA Course of Study: Retirement, Deferred Compensation, and Welfare Plans of Tax-Exempt and Governmental Employers, on September 9, 2004. Read more