Printer Friendly

Tax facts navigators.

ANNUITY NAVIGATOR

1035 (Tax-Free) Exchange

* Does tax liability arise when a policyholder exchanges one annuity contract for another? Q 30

Charitable Gift Annuity

* How are payments received under a charitable gift annuity agreement taxed? Q 43

* What are the tax consequences to the obligor in a charitable annuity transaction? Q 44

Fixed Annuity

* What is an annuity contract and what general rules govern in the income taxation of payments received under annuity contracts? Q 1

* Amounts received as an annuity: basic rule Q 7; life annuity-single Q 11, life annuity--temporary Q 12; life annuity--joint and survivor Q 13, Q 14, Q 15, Q 16, Q 17; fixed period or installments Q 19

* Amounts not received as an annuity: basic rule Q 3; premature distributions Q 4; dividends Q 5

Non-natural Person Rule

* How are annuity contracts held by corporations and other nonnatural persons taxed? Q 2

Private Annuity

* How are payments under a private annuity taxed? Q 41

* What are the tax consequences to the obligor in a private annuity transaction? Q 42 Sale/Purchase of Contract

* If the owner of an annuity contract sells the contract, what are the income tax consequences to the seller? Q 28

Surrender, Redemption, or Maturity of Contract

* What are the income tax results when the owner of an annuity contract takes the lifetime maturity proceeds or cash surrender value in a one sum cash payment? Q 33

Variable Annuity

* How are the payments under a variable annuity taxed? Q 22

BUY-SELL NAVIGATOR

AMT

* How is life insurance treated for purposes of the AMT? Q 96

Accumulated Earnings Tax

* Will income retained for the purchase of life insurance cause an accumulated earnings tax problem for the corporation? Q 90

Attribution

* What are the family attribution rules and how do they affect buy-sell agreements? Q 83, Q 84, Q 85

Employer-Owned Life Insurance ("COLI")

* Notice and consent rules applicable to contracts after August 17, 2006 Q 63 Estate Tax Consequences

* How will a closely held business be valued for estate tax purposes? Q 613

* Will death proceeds of life insurance owned by, and whose death proceeds are payable to, a corporation or partnership be included in the insured's taxable estate? Q 611, Q 612

Gift Tax Consequences

* Does a life insurance funded buy-and-sell agreement fix the value of a business interest for gift tax purposes? Q 706

Income Tax Consequences

* Will death proceeds paid to a business be free of federal income tax, whether the business is a corporation, partnership, or to an individual as a sole proprietorship? Q 63

* How will the receipt of death proceeds by an S corporation be treated? Q 77

* What are the income tax results when a deceased partner's interest is sold or liquidated under a business purchase agreement? Q 93

Premiums

* Whether or not premiums paid by a business for the benefit of the business will be deductible. Q 46

* How is the payment of a life insurance premium by an S corporation treated? Q 56

Stock Redemptions

* What is a Section 303 redemption? Q 86

* How will a redemption of stock by an S corporation be treated? Q 92 Transfer for Value

* What constitutes a transfer for value? Q 65

EXECUTIVE COMPENSATION NAVIGATOR

Design Issues

* What is reasonable compensation for an executive? What happens if compensation is "unreasonable"? Q 109.

* Executives often have "Golden Parachutes" that provide generous severance packages in the event of a change in corporate control. If these payments are "excessive," they are subject to special penalties. Q 110.

* Traditional deferred compensation agreements may be funded, with money secured in an annuity or trust (Q 111) or may be unfunded, with money subject to the general creditors of the employer (Q 115).

* Stock options (Q 130) and restricted stock (Q 131]) are common means of compensating executives.

* The American Jobs Creation Act of 2004 imposed new requirements (IRC Section 409A) on deferred compensation arrangements. Q 116 and Q 119.

Distribution and Taxation Issues

* Employers generally may deduct deferred compensation payments in the year employees includes the payments in income. Q 111 and Q 115.

* Deferred compensation is generally taxable unless subject to a "substantial risk of forfeiture." Q 113. Employees are taxed on deferred compensation when they receive the "economic benefit." Q 117.

* Stock options that meet statutory requirements receive favorable tax treatment. Q 130.

* Arrangements that violate the requirements of IRC Section 409A incur retroactive taxation, a 20% penalty tax, and inflated interest penalties. Q 116 and Q 119.

401(k) NAVIGATOR

Design Issues

* 401(k) plans are a type of defined contribution plan that provides for elective deferral contributions by employees. For a brief overview, see Q 397.

* The amount an employee can defer in any year is subject to a dollar limit, explained in Q 399. Catch-up contributions by employees age 50 and over are also allowed; see Q 400.

* After-tax deferrals are permitted if the plan offers a "qualified Roth contribution program"; see Q 405 for the applicable requirements.

* The requirements for an "eligible investment advice arrangement" are explained at Q 407.

* Like all qualified plans, 401(k) plans are subject to the qualification requirements (explained at Q 325 to Q 363). In addition, special nondiscrimination and qualification requirements apply (see Q 398 and Q 411 to Q 412.

* Safe harbor 401(k) plans (Q 403), SIMPLE 401(k) plans (Q 404), and beginning after 2007, qualified automatic contribution arrangements Q 402, do not have to perform certain nondiscrimination tests.

* The Internal Revenue Code does not provide any separate requirements for solo 401(k) plans, but many one-employee small businesses find them beneficial; see Q 401.

* Beginning in 2010, a combination defined benefit/401(k) plan will be available. See Q 408 for the requirements and details.

Distribution and Taxation Issues

* Special distribution restrictions apply to 401(k) plans, explained at Q 409; however, 401(k) plans may offer hardship distributions (Q 410) and plan loans (Q 433 to Q 435) if specific requirements are met.

* 401(k) plans that hold publicly traded employer securities are generally subject to a diversification requirement beginning in 2007; see Q 382.

* Often when a 401(k) plan fails the special nondiscrimination requirements for 401(k) plans, it makes corrective distributions to one or more highly compensated employees, as explained at Q 413.

* Participants who invest 401(k) plan proceeds in employer stock may benefit from net unrealized appreciation treatment upon distribution; see Q 441.

* The tax treatment of preretirement distributions is explained at Q 436 to Q 437. Post retirement distributions are explained beginning at Q 438.

* The minimum distribution requirements and penalty are explained at Q 342 to Q 350.

FULLY INSURED (412(i)) PLAN NAVIGATOR

Design Issues

* A fully insured plan (known as a 412(i) plan for the IRC Section in which its requirements formerly appeared) is a defined benefit pension plan that is funded by life insurance, annuity contracts, or some combination of the two. Q 414 provides a brief overview. The Pension Protection Act of 2006 redesignated IRC Section 412(i) as IRC Section 412(e)(3).

* The amount of life insurance that can be provided in a qualified plan is subject to limits, explained in Q 427. Note that in 2004 guidance, the IRS categorized certain plans that provide excessive coverage as "listed transactions," meaning that special penalties and disclosure requirements may be applied.

* If the plan meets the special fully insured plan requirements, it will be exempt from the minimum funding requirements explained in Q 415. If these requirements are not satisfied, the plan will be subject to the minimum funding standard explained in Q 387.

* Like all qualified plans, a fully insured plan must satisfy the qualification requirements (explained at Q 325 to Q 363). In addition, special requirements that are specific to defined benefit plans (Q 372 to Q 373) and pensions (Q 383 and Q 386) apply.

Taxation and Distribution Issues

* Since a fully insured (412(i)) plan is a type of defined benefit plan, the employer is subject to the deduction limit for pensions, explained at Q 385. If the employer sponsors more than one plan, it is subject to the limits explained in Q 369.

* Employee participants are taxed on the cost of current life insurance protection in a fully insured (412(i)) plan. The method of calculating these costs is explained in Q 431 and Q 432.

* Distributions of life insurance contracts from fully insured plans are subject to the valuation requirements explained in Q 440.

* The income tax treatment of annuity payouts after retirement is explained at Q 442 to Q 444.

* The minimum distribution requirements and penalty are explained at Q 342 to Q 350.

HEALTH INSURANCE NAVIGATOR

COBRA

* What is a qualifying event for purposes of the COBRA continuation coverage requirements? Q 175

* How long must COBRA continuation coverage be provided? Q 177

* Who is a covered employee for purposes of the COBRA continuation coverage requirements? Q 179

* Who must pay the cost of COBRA continuation coverage and how is the cost calculated? Q 180

* When must an election to receive COBRA continuation coverage be made? Q 182

Deductibility of Premiums Paid by Employer

* May an employer deduct the cost of premiums paid for accident and health insurance for employees as a business expense? Q 167

Disability

* How is personal disability income coverage taxed?? Q 194

Employer-Provided Health Insurance

* What nondiscrimination requirements apply to employer-provided health benefits? Q 162

* What portability, access, renewability, and coverage requirements must be satisfied by group health plans? Q 186

* What are the rules concerning pre-existing condition exclusions under HIPAA '96? Q 187

* What are the rules concerning discrimination based on health status under HIPAA '96? Q 188

* What are the rules concerning nondiscrimination for group health plans under GINA 2008? Q 188

Health Savings Account (HSA)

* What is a Health Savings Account (HSA) and how can one be established? Q 196

* What is a "high deductible health plan" for purposes of a Health Savings Account (HSA)? Q 198

* What are the limits on amounts contributed to a Health Savings Account (HSA)? Q 199

* How are amounts distributed from a Health Savings Account taxed? Q 203 Health Reimbursement Arrangement (HRA)

* What is a health reimbursement arrangement (HRA) and how is it taxed? Q 168

Personal Health Insurance

* Are premiums paid for personal health insurance deductible? Q 154

* Are benefits received under a personal health insurance policy taxable income? Q 155

Self-Employed Individuals, Partners, S-Corporation Shareholder-Employees

* How is health insurance coverage for sole proprietors, partners, and S corporation shareholder-employees taxed? Q 166

Stockholder-Employees of Closely-Held Corporations

* How are accident or health benefits taxed if they are provided by a closely held C corporation to its stockholder-employees only? Q 165

Taxability of Coverage/Benefits

* Is the value of employer-provided coverage under accident or health insurance taxable income to the employee? Q 159

* Are payments received by employees under employer-provided accident or health insurance taxable income? Q 160

INDIVIDUAL RETIREMENT PLAN NAVIGATOR

Plan Options

* Individuals may contribute up to $5,000 per year (2010) to a traditional IRA (Q 221)) or a Roth IRA (Q 222). Catch-up contributions of $1,000 (2010) for individuals age 50 and over are also permitted. See, generally, Q 211.

* A self-employed individual may contribute up to 25% of self-employment income, up to $49,000 (2010) to a SEP-IRA. A small employer with a SEP-IRA must also make required contributions on behalf of covered employees. Q 241.

* A SIMPLE IRA allows salary deferrals for self-employed individuals and small employers of up to $11,500 (2010). Employers must also generally make required matching contributions. Catch-up contributions of $2,500 (2010) for individuals age 50 and over are also permitted. Q 243.

* A Solo 401(k) plan is 401(k) plan covering a single individual. 401(k) plans permit salary deferral of up to $16,500 (2010). Catch-up contributions of $5,500 (2010) for individuals age 50 and over are also permitted. Q 401.

Distribution and Taxation Issues

* Contributions to a traditional IRA may be deductible up to the annual contribution limit, depending on an individual's income and "active participation" Q 225 in an employer retirement plan. Q 221.

* Contributions to a Roth IRA are not tax deductible, but qualifying distributions from a Roth IRA are not subject to federal income tax. Q 222 and Q 229.

* Contributions to a SEP-IRA Q 241, a SIMPLE IRA Q 244, or a Solo 401(k) Q 401 are generally tax deductible to the employee or employer making the contribution and are not includible in the employee's income. Salary deferrals under a SIMPLE IRA Q 244 or a Solo 401(k) Q 401 are subject to federal Social Security and unemployment taxes.

* Distributions from a traditional IRA Q 228, a SEP-IRA Q 241, a SIMPLE IRA Q 243, or a Solo 401(k) Q 401 are generally taxable as ordinary income to the beneficiary.

Estate Tax

* IRAs are generally includable in decedent owner's gross estate; some grandfathered exclusions are available Q 648. Benefits payable to surviving spouse will generally qualify for the marital deduction Q 649. An income tax deduction may be available for estate tax attributable to the IRA Q 827.

INTRAFAMILY AND BUSINESS TRANSFER NAVIGATOR

Installment Sales

* How can an installment sale be used to defer the payment of income taxes? Q 806

Private Annuity

* How can a private annuity be used to defer the payment of income taxes? Q 41

* How is a private annuity taxed to the person making payments? Q 42

* How should a private annuity be structured to avoid a taxable gift? Q 705

* How can a private annuity be used to remove property from the taxable estate? Q 608

Interest-Free and Below Market Rate Loans

* What are the income tax consequences of such loans? Q 805

* Are taxable gifts made of foregone interest? Q 903 Business Continuation (Buy-Sell)

* Are premiums paid for life insurance used to fund a buy-sell deductible? Q 46, Q 48, Q 50, Q 57, Q 60

* Does the payment of premiums result in taxable income to anybody? Q 47, Q 51, Q 52, Q 53, Q 54

* Can proceeds of life insurance used to fund a buy-sell be received income tax-free? Q 63

* What if there is a transfer for value? Q 64, Q 65

* What are the income tax implications of a cross-purchase agreement? Q 81, Q 82

* Of an entity agreement? Q 83

* What effect does a buy-sell agreement have on gift tax value? Q 706

* How can a buy-sell be used to fix estate tax value? Q 613, Q 914 Section 303 Stock Redemption

* How can Section 303 stock be used to help solve liquidity problems at death? Q 86

Choice of Entities

* How is a partnership taxed? Q 842

* An LLC? Q 841

* A personal service corporation? Q 840

* An S corporation? Q 839

* A corporation? Q 838

Valuation of Business Interests

* How is a closely-held business valued for estate tax purposes? Are discounts available? Q 613

* What special valuation rules apply to transfers of interests in partnerships and corporations? Q 912, Q 915

LIFE INSURANCE NAVIGATOR

1035 (Tax-Free) Exchanges

* Does tax liability arise when a policyholder exchanges one life insurance contract for another one? Q 265

Accelerated Death Benefit (for terminally or chronically ill insured)

* What is the income tax treatment of an accelerated death benefit payment on a life insurance contract? Q 269

Cash Surrender Value

* Are the annual increases in the cash surrender value of a life insurance policy taxable income to the policyholder? Q 249

Charitable Gifts

* Are gifts of life insurance to charitable organizations subject to gift tax? Q 707

Demutualization

* When shares of stock are received in a demutualization, what is the tax treatment when those shares are sold? Q 305

Dividends

* Are the dividends payable on a participating life insurance policy taxable income? Q 254

Death Proceeds

* Are life insurance proceeds payable by reason of the insured's death taxable income to the beneficiary? Q 273

* If an existing life insurance policy is sold or otherwise transferred for a valuable consideration, are the death proceeds wholly tax-exempt ("transfer for value rule")? Q 279

Estate Tax Consequences

* What benefits payable at death are included in the term "life insurance" for estate tax purposes? Q 625

Gifts

* What constitutes a gift of a life insurance policy or annuity contract? Of a premium? Q 700

Group Term Life Insurance

* What is group term life insurance? Q 139

* What are the tax benefits of employer-provided group term life insurance? Q 138

* Is the cost of group term life insurance coverage, provided by an employer, taxable income to the insured employee? Q 142

"Life Insurance Contract" Defined

* What is a "life insurance contract" for purposes of the death benefit exclusion? (cash value accumulation test, guideline premium test, cash value corridor test) Q 275

Life Settlements

* If the owner of a life insurance or endowment contract sells the contract, such as in a life settlement transaction, what are the income tax consequences to the seller? Q 263

* How is the purchaser of a life insurance or endowment contract taxed? Q 264 Living Proceeds

* What are the rules for taxing living proceeds received under life insurance policies and endowment contracts? Q 251

Loans

* To what extent are life insurance policy loans taxable? Q 261

* Can a life insurance policy owner take an income tax deduction for the interest he pays on a policy loan? Q 262

Modified Endowment Contract (MEC)

* How are distributions from a life insurance policy that is classified as a modified endowment contract (MEC) taxed? Q 252

Multiple-Life Policies

* Does the income taxation of a life insurance policy that insures more than one life differ from the taxation of a policy that insures a single life? Q 304

Single Premium Policy

* How is a single premium life insurance policy, including a single premium variable life insurance policy, taxed? Q 288

Surrender of Policy

* What are the income tax results when the owner of a life insurance or endowment contract takes the lifetime maturity proceeds or cash surrender value in a one sum cash payment? Q 266

Viatical Settlements

* What is the income tax treatment of an amount received from a viatical settlement provider? Q 270

LIFE INSURANCE TRUST NAVIGATOR

Income Tax

* Are life insurance proceeds taxable? To the trust? To trust beneficiaries? Q 313

* Who is taxed on trust income? The grantor? The trust? Trust beneficiaries? Q 311

* What are the general rules for the income taxation of trusts? Q 843

Gift Tax

* Can transfers to trust qualify for the gift tax annual exclusion? Q 725

* What about annual exclusions for minor beneficiaries? Q 726

* Should Crummey withdrawal powers be used for the annual exclusion? Q 727

* What is the effect of a beneficiary exercising or not exercising a withdrawal power? Q 728

* Can transfers to trust qualify for the gift tax marital deduction? Q 723

Generation-Skipping Transfer Tax

* Is the trust generation-skipping? Q 951

* When do transfers to trust qualify for the GST annual exclusion? Q 751

* How can GST exemption be leveraged with life insurance? Q 752

Estate Tax

* How can an irrevocable life insurance trust be used to exclude life insurance proceeds from an insured's estate? Q 651

* Under what circumstances are life insurance proceeds includable in an insured's estate? Q 626

* Are proceeds payable to insured's estate? Q 627, Q 628

* Does insured have incidents of ownership? Q 732

* Does insured have incidents of ownership when insured is the trustee or can remove a trustee? Q 632

* Was a life insurance policy transferred to the trust within three years of death? Q 718

* What is the effect of a beneficiary exercising or not exercising a withdrawal power? Q 653

* Can life insurance proceeds payable to the trust be used to pay insured's estate debts and death taxes? Q 654

REQUIRED MINIMUM DISTRIBUTION NAVIGATOR

* The minimum distribution requirements apply to all individual retirement accounts and individual retirement annuities (IRAs--see Q 234 to Q 238, qualified plans Q 341 to Q 349 and 403(b) tax sheltered annuities Q 496 to Q 499).

* The penalty for failure to make minimum distributions is 50%, and is imposed on the individual, not the plan. See Q 234 (IRAs), Q 342 and Q 350 (qualified plans) and Q 496 (tax sheltered annuities).

Lifetime requirements

* The requirements for lifetime distributions from individual accounts are explained at Q 235 (IRAs), Q 344 (qualified plans) and Q 497 (tax sheltered annuities). Participants with older accumulations (pre-1987) in tax sheltered annuities may be able to delay distributions to age 75 for such amounts (see Q 496 and Q 498).

* An individual's "required beginning date" is generally April 1 of the year after the individual reaches age 70 1/2 (see Q 235). For qualified plans (see Q 343) and tax sheltered annuities (see Q 496), the date may be later if the individual works after age 70 1/2.

* The RMD uniform lifetime table (see Appendix F) is used to determine the minimum distribution amount for most lifetime purposes.

* To apply the minimum distribution requirements to a qualified plan interest for which there is a qualified domestic relations order (QDRO) in effect, see Q 348.

* Individuals receiving an annuity payout from a qualified plan are subject to the requirements explained at Q 345. Such an individual's required beginning date is determined as explained in Q 343. An "incidental benefit rule" applies to qualified plans Q 349 and tax sheltered annuities Q 498.

* The minimum distribution requirements do not apply to Roth IRAs during the owner's lifetime (see Q 235); however they do apply after death (see below).

* Required minimum distributions may not be rolled over (see Q 455, Q 461, and Q 462).

After death requirements

* The requirements for after-death distributions are explained at Q 236 (IRAs), Q 346 (qualified plans) and Q 499 (tax sheltered annuities).

* The RMD single life table (see Appendix F) is used to determine the minimum distribution amount for most purposes after death.

* The payout requirements after death depend on the identity and status of the designated beneficiary; see Q 237 (IRAs), Q 347 (qualified plans) and Q 499 (tax sheltered annuities).

* For a trust beneficiary to meet the definition of "designated beneficiary," the trust must satisfy special "see-through trust" requirements explained in Q 347.

* Special rules apply to surviving spouses; see Q 236 (IRAs), Q 346 (qualified plans) and Q 499 (tax sheltered annuities).

S CORPORATION NAVIGATOR

* In general, how is an S corporation treated for income tax purposes? Q 839

* What special rules are there for qualified plans of S corporations? Q 424

* How is health insurance coverage for S corporation shareholders treated? Q 166

* How are redemption payments of an S corporation taxed? Q 92

* What are the income tax consequences of an S corporation paying life insurance premiums? Q 56

* How are death proceeds received by an S corporation treated for income tax purposes? Q 77

* How is gain realized on the sale of a life insurance policy by an S corporation? Q 91

TSA NAVIGATOR

Contribution Limits (and Excise Taxes):

* What limits are there on excludable contributions to a tax sheltered annuity? Q 479

* How does the Section 415 overall limit affect the excludable amount for a tax sheltered annuity? Q 480

* What is the limit on excludable amounts that may be contributed to tax sheltered annuity plans under salary reduction agreements? What are the consequences of exceeding the limit? Q 482

* What special rules apply to tax sheltered annuities for church employees? Q 483

* Can an employer make post-retirement contributions to a tax sheltered annuity on behalf of a retired employee? Q 486

* What is a Roth 403(b) Contribution Program? Q 487

* What is the effect of making contributions to a tax sheltered annuity in excess of the "overall limit"? Q 481

* What is an excess contribution to a tax sheltered annuity? What is an excess aggregate contribution? What excise taxes apply to them? Q 484

* What excise taxes apply and additional taxes apply to tax sheltered annuity contributions? Q 503

Distributions

* What distributions from a tax sheltered annuity are subject to a penalty for early distributions? Q 495

* When must distributions from a tax sheltered annuity begin?What is the effect of failure to meet the requirements? Q 496

* What minimum distributions must be made from a tax sheltered annuity during the life of the participant under Section 401(a)(9)? Q 497

* What are the requirements of the minimum distribution incidental benefit rule with respect to tax sheltered annuities? Q 498

* How are the minimum distribution requirements met after the death of a tax sheltered annuity participant? Q 499

* What excise taxes apply and additional taxes apply to tax sheltered annuity distributions? Q 503

Eligible Plan Sponsors

* What types of organizations can make tax sheltered annuities available to their employees? Q 474

Funding Methods

* What are the various methods of funding a tax sheltered annuity plan? Q 475

General

* What are the tax benefits of a tax sheltered annuity? Q 473

Loans

* Are amounts borrowed under a tax sheltered annuity taxable income? Q 493

Nondiscrimination Requirements

* What nondiscrimination requirements must a tax sheltered annuity meet? Q 478

Plan/Contract Requirements:

* What requirements must a tax sheltered annuity contract meet? Q 476

Plan Termination

* Can a 403(b) plan be terminated? Q 504

Rollovers

* May an employee, his surviving spouse, or non-spouse beneficiary roll over a distribution from a tax sheltered annuity? Q 489

Taxation

* Are the payments received under a tax sheltered annuity taxable income to the employee? Q 500

* How is a death benefit under a tax sheltered annuity taxed to the employee's beneficiary? Q 501

* How is a reduction in salary for a tax sheltered annuity treated for Social Security tax and income tax withholding purposes? Q 502

Transfers and Contract Exchanges

* May an employee transfer his tax sheltered annuity? Q 488

* May an employee transfer funds from a 403(b) amount to purchase past service credits? Q 490

Written Plan

* What is the written plan requirement? Q 476

WELFARE BENEFIT FUND/VEBA NAVIGATOR

Deductible Contributions, Account Limits

* May an employer make deductible contributions to a welfare benefit fund to provide medical, disability, and life insurance benefits (including postretirement medical and death benefits) for employees and independent contractors? Q 505

* What is the limit on the amount an employer may deduct for contribution to a welfare benefit fund to provide disability, medical, death, and other benefit to employees and independent contractors? Q 507

* What are the tax consequences to the employer and to the welfare benefit fund if the employer contributes excess amounts to the fund? Q 507

* Are an employer's contributions to a 501(c)(9) trust (VEBA) deductible? Q 518

Eligible Welfare Benefits

* May an employer make deductible contributions to a welfare benefit fund to provide medical, disability, and life insurance benefits (including postretirement medical and death benefits) for employees and independent contractors? Q 505

* What is the penalty for providing certain disqualified benefits through a welfare benefit fund? Q 512

* What benefits can a 501(c)(9) trust (VEBA) provide? Q 517 Postretirement Medical Benefits

* Must a welfare benefit fund providing postretirement life insurance or medical benefits meet nondiscrimination requirements? Q 511

* If postretirement medical or life insurance benefits are provided to a key employee through a welfare benefit fund, what special rules apply? Q 510

Single Employer Plan (419(e))

* What is a single employer plan? Q 515 10 or More Employer Plan (419A(f)(6))

* What is the exception for a welfare benefit fund that is part of a 10 or more employer plan? Q 514

Voluntary Employees' Beneficiary Association (VEBA)

* What is a "501(c)(9) trust" (VEBA)? Q 514

* What benefits can a 501(c)(9) trust (VEBA) provide? Q 517

* How are contributions and benefits payable under 501(c)(9) trusts taxed to participants? Q 519

* Must a tax-exempt welfare benefit fund apply for recognition of its tax-exempt status? Q 513

* What income of a tax-exempt welfare benefit fund is taxable as unrelated business taxable income? Q 509
COPYRIGHT 2010 ALM Media, LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Tax Facts on Insurance and Employee Benefits
Date:Jan 1, 2010
Words:4679
Previous Article:Abbreviations.
Next Article:Annuities.

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |