This article explains the unique characteristics of a cash balance pension plan and its suitability for use by professional groups where the owner-professionals are already maxing out their contributions under a defined contribution plan.
As a ...
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Resources
You Need To Determine If Your 403(b) Arrangement Is Subject To ERISA, And If It Is – What To Do About It
For some 501(c)(3) organizations, the appealing thing about allowing employees to participate in a 403(b) arrangement has been the minimal employer involvement and the fact that the plan can be operated on a "non-ERISA" basis. That is, the 403(b) ...
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Unused Leave Or PTO Cash-Outs And Tax Problems For Employees: Can They Have Their Cake And Eat It Too?
A number of employers, particularly public agencies, allow their employees to accumulate significant amounts of paid time off, vacation or paid leave (collectively PTO). This article alerts employers to certain practices and policies regarding the ...
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Dividends Versus Distributions In ESOP Planning
C corporations issue dividends. S corporations issue distributions. What's the difference? In ESOP planning, you might find that S corporation distributions mean the difference between being able to finance an ESOP transaction or not. In a C ...
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ESOP Share Distributions: “Recycle” Or Redeem?
You have choices when it comes to distributing ESOP benefits to participants. Do you distribute shares from the plan that the company immediately redeems from the participant? Or, do you keep the shares in the plan by recycling them among the ...
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ESOP Companies: Should You Elect S Corporation Status?
Here's the analysis you need to figure out whether electing S corporation status makes sense for your ESOP company. We look at built-in gain, LIFO/FIFO, tax attributes and more. You'll still want to talk to your CPA, but this article will give you ...
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Confused by the terminology? Check our Glossary of Terms