New Benefits Guide: Government and Tax-Exempt Organizations
(Posted on December 30, 2020 by )


Carol V. Calhoun has written a Benefits Guide entitled “Government and Tax-Exempt Organizations” for Bloomberg Law. The Bloomberg Law Benefits Guide is intended to be a resource for non-benefits practitioners that is easy to understand and explains complex topics in a straightforward way. Ms. Calhoun’s guide covers the types of plans maintained by governmental and tax-exempt organizations, determination of whether a plan is governmental, legal requirements and restrictions, and correction methods in case of errors in administration. The Benefits Guide is available to Bloomberg subscribers, or a copy of Ms. Calhoun’s chapter is available at this link.

Fifth Edition of the Governmental Plans Answer Book Published
(Posted on December 11, 2020 by )


The Fifth Edition of the Governmental Plans Answer Book has now been published. The Governmental Plans Answer Book is the only full-length treatise on the law governing the retirement plans that federal, state, and local governments maintain for their employees. The law has changed a lot since the Fourth Edition was published in 2017, and the new edition has been updated to reflect them.

The Fifth Edition of Governmental Plans Answer Book gives subscribers the most relevant, current, and practice-oriented answers to the issues faced daily by plan administrators, attorneys, actuaries, consultants, accountants, and other pension professionals as they navigate the requirements and procedures involved in administering their plans. It examines the following significant changes and case law in this area:

  • Department of Labor regulations that define who is a fiduciary as a result of rendering investment advice to a plan, or to its participants, or beneficiaries (see Chapter 7).
  • Elimination of the ability to obtain Internal Revenue Service (IRS) determination letters on individually designed plans, except on their inception or
    termination (see Chapter 4).
  • Recent legislative developments affecting governmental plans (see Chapter 13).
  • Expanded coverage of cases in text cross-referenced to Appendix E, Recent Court Decisions of Interest Involving Governmental Plans (see Appendix E).
  • Updates on the size of the public pension community: its membership, assets, rate of participation in different types of retirement plans, and the number of participating public employers (see Chapter 2 and Appendix Table A–1).
  • New and updated information regarding public pension financial reporting and communications practices (see Chapter 5).
  • Expanded and updated descriptions of hybrid retirement plans provided for employees of state and local government (see Chapter 2 and Appendix Tables A–2 through A–5).
  • An examination of how the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as further amended by the Bankruptcy Technical Corrections Act of 2010, impacted certain issues arising under the Bankruptcy Code (see Chapter 14).
  • Issues concerning proof of electronically signed or adopted beneficiary designation (see Q 12:5).
  • A review of a Supreme Court case that held a Chapter 7 trustee could not contest the validity of a claimed exemption after the objection deadline
    expired (see Q 14:32).
  • New case law discussing the use of the legal fiction of a nunc pro tunc order (see Q 13:33).
  • Expanded discussion of pre-approved plans (see Chapter 4).
  • Issuance of IRS opinion and advisory letters on pre-approved 403(b) plans (see Chapter 4).
  • Inception of annual Required Amendments Lists for individually designed plans (see Chapter 4).
  • Guidance on correction procedures if a 403(b) plan erroneously excludes participants from making contributions (see Chapter 4).
  • Modifications to the Employee Plans Compliance Resolution System (see Chapter 4).
  • Expanded discussion on community property (see Q 12:45).

For more information on this book, written by Carol V. Calhoun, Cynthia L. Moore, and Keith Brainard, you can use the following links:

Description | Table of Contents | Purchase

New article: Section 403(b) Plan Design and Compliance
(Posted on December 5, 2018 by )


Lexis Practice Advisor articleA new article, Section 403(b) Plan Design and Compliance, discusses the rules that apply when eligible tax-exempt organizations establish tax-sheltered annuities, custodial accounts, or retirement income accounts, as described in Section 403(b) of the Internal Revenue Code (403(b) plans).

This article addresses the following topics:

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New Article: Pre-Approved 403(b) Plans
(Posted on November 29, 2018 by )


Internal Revenue ServiceIn March 2017, the Internal Revenue Service (IRS) began issuing advisory and opinion letters to the first preapproved retirement programs described in Internal Revenue Code (I.R.C.) § 403(b) (403(b) plans). A new article, Pre-Approved 403(b) Plans, discusses preapproved 403(b) plans, including their advantages, legal pitfalls, and other issues that an eligible employer may consider when determining whether to convert its existing 403(b) plan into a preapproved plan.

The major topics are:

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New article: Executive Compensation Arrangements for Tax-Exempt Organizations
(Posted on September 14, 2018 by )


Lexis Practice AdvisorTax-exempt organizations face special legal challenges in developing compensation packages for their executives. A new article published in the Lexis Practice Advisor provides practical guidance on developing benefits for executives of nonprofits.

This article is divided into the following main topics:

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New article: Pre-approved Plan Design and Compliance
(Posted on August 13, 2018 by )


Lexis Practice AdvisorWith the IRS cutting back on determination letters for individually designed plans, more and more employers are switching to pre-approved plans. An article recently published in the Lexis Practice Advisor discusses practical considerations involved with such plans. Topics include:

New Article: Substantial Risk of Forfeiture
(Posted on July 25, 2018 by )


Lexis Practice AdvisorAn article recently published in the Lexis Practice Advisor, Substantial Risk of Forfeiture, discusses the concept of substantial risk of forfeiture (SRF) under sections 83, 409A, 457(f), 457A, and 3121(v)(2) of the Internal Revenue Code and the different consequences of the failure to achieve a SRF under each such section.

Topics covered are:

It is accompanied by a Substantial Risk of Forfeiture Comparison Chart, which summarizes the rules.

Nonprofits and Governments Face Compensation and Benefits Issues under the New Tax Law
(Posted on January 11, 2018 by )


The recently passed tax bill imposes a 21% excise tax on excess compensation and excess severance benefits of certain executives of nonprofit and governmental employers. The provision has a substantial impact on the compensation and benefits that such organizations can provide for their executives. Moreover, the determination of which employers, and which executives, are covered includes several traps for the unwary.

Read more.

New chart: Pre-approved Plan Eligibility Checklist
(Posted on January 5, 2018 by )


Lexis Practice AdvisorThe IRS maintains pre-approved plan programs (1) for retirement plans described in I.R.C. § 401(a) (qualified plans), and (2) for annuity contracts or custodial accounts described in I.R.C. § 403(b) (403(b) plans). A new chart shows what types of plans are and are not eligible to use the pre-approved plan program.

Read more.