403(B) Answer Book with 2007 Cumulative Supplement

by Levy, Donald R.; Seymon-Hirsch, Barbara N.; Anderson, Janet M.; Seymon-Hirsch, Barbara N.; Anderson, Janet M.

• ISBN13: 9780735531789
• ISBN10: 0735531781
• Edition: 6th
• Format: Hardcover
• Copyright: 2002-06-01
• Publisher: Wolters Kluwer Law and Business

Summary

This comprehensive and reliable reference covers the complete range of 403(b) and 457 plan topics, including: Taxation ERISA and other regulations Plan administration Insurance and investment issues 403(b) Answer Book, Sixth Edition provides clear, practical coverage of: the final 403(b) regulations Maximum contribution and other discrimination rules Choosing among the many funding alternatives Avoiding fiduciary responsibility Prohibited transactions and exemptions Reporting and other requirements of IRS, DOL, and PBGC How 403(b) plans compare with 401(k) plans Which plans are best for which situations Calculating the exclusion allowance You will also find numerous examples, useful lists of government regulations and rulings, and much more!

Table of Contents

Overview of Section 403(b) Arrangements	p. 1
Introduction to Section 403(b) Programs	p. 2
Basic Requirements	p. 5
Eligible Employers	p. 9
Eligible Employees	p. 11
Requirements Relating to Contributions	p. 12
Requirements Relating to Investments	p. 15
Requirements Relating to Distributions	p. 16
Section 501(c)(3) Organizations	p. 1
Introduction to Section 501(c)(3) Organizations	p. 1
Basic Requirements	p. 3
State Filing Requirements	p. 12
Maintaining 501(c)(3) Status	p. 13
Recordkeeping and Disclosure Requirements	p. 18
Contribution Limits	p. 1
Overview of Section 403(b) Contribution Limits	p. 2
Section 403(b)(2) Contribution Limits	p. 4
Includible Compensation	p. 5
Years of Service	p. 8
Prior Years' Contributions	p. 11
Section 415(c) Contribution Limits	p. 13
Special Alternative Limits	p. 17
Section 402(g) Contribution Limits	p. 21
Section 414(v) Catch-up Limit	p. 23
Coordination of Deferrals and Contributions	p. 24
Correction of Nonentitled Contributions	p. 27
Contributions That Exceed All Limits	p. 36
Overmax Contributions Under Section 403(b)(7) Custodial Accounts	p. 36
Nondiscrimination in Coverage and Benefits	p. 1
Overview of Nondiscrimination Requirements	p. 2
Application of Nondiscrimination Requirements for Different Types of Contributions	p. 4
Minimum Participation Rules	p. 9
Coverage Rules	p. 11
Nondiscrimination Rules	p. 17
Investments	p. 1
Funding 403(b) Arrangements	p. 2
Protecting the Safety of Investments	p. 10
Employer Responsibility for 403(b) Investments	p. 12
Protection Against Liability	p. 18
Making Investment Decisions	p. 20
Participant-Directed Investment	p. 23
Investment Communication Requirements	p. 26
Providing Investment Education and Advice	p. 29
Procedures for Investment Instructions	p. 32
Records Retention	p. 35
Paying Plan Administration Expenses	p. 35
Financial Services Modernization	p. 36
Annuities	p. 1
In General	p. 1
Insurers	p. 6
Types of Annuities and How They Function	p. 7
Regulations and Restrictions	p. 10
Employers	p. 18
Section 403(b)(7) Custodial Accounts	p. 1
Requirements	p. 2
Regulated Investment Companies	p. 5
Tax Treatment	p. 5
Transfer of Assets	p. 6
Distributions	p. 7
Application of Federal Securities Laws to Section 403(b) Arrangements	p. 1
ERISA Requirements	p. 1
Circumstances Under Which a 403(b) Arrangement Is Subject to ERISA	p. 2
Vesting	p. 7
Joint and Survivor Annuity Requirements	p. 9
Participation Requirements	p. 10
Death Benefit Beneficiary Designations	p. 11
Amendments	p. 12
Bonding and Plan Assets	p. 15
Disclosure and Reporting	p. 17
Compliance with Claims Procedures	p. 24
Assignment or Alienation	p. 27
Fiduciary Matters	p. 28
Distributions	p. 1
Requirements Governing Timing and Amount of Benefit Distributions	p. 3
Calculation and Distribution of Grandfathered Amounts	p. 10
Distributions After Death of Participant	p. 11
Designated Beneficiaries	p. 15
Minimum Distribution Incidental Benefit Requirements	p. 17
Taxation and Investment in the Contract	p. 20
Withdrawal Restrictions	p. 24
Hardship Distributions	p. 26
Death Benefits	p. 28
Rollovers and Transfers	p. 28
Tax Withholding and Reporting	p. 42
Loans, Life Insurance, and Plan Termination	p. 1
Loans	p. 2
Life Insurance	p. 22
Plan Termination	p. 27
Beneficiary Designations	p. 1
Making a Beneficiary Designation	p. 2
Using Trusts	p. 7
Family Rights That Restrain a Beneficiary Designation	p. 8
Charitable Gifts	p. 10
Common-Law Marriage	p. 11
Community Property	p. 20
Premarital Agreements	p. 22
Postnuptial Agreements	p. 25
Tenancy by the Entirety	p. 26
Disclaimers	p. 28
Government Claims	p. 31
Unclaimed Property	p. 32
Tax-Oriented Estate Planning	p. 33
Qualified Domestic Trusts for Noncitizens	p. 39
Who Can Give Advice	p. 40
Qualified Domestic Relations Orders	p. 1
Overview	p. 2
Requirements of a Qualified Domestic Relations Order	p. 7
Special Provisions	p. 14
Plan Administration Procedures	p. 16
Tax Treatment	p. 25
Bankruptcy	p. 29
State Courts' Purview	p. 30
Legal Malpractice	p. 31
Tax Aspects of Church Plans	p. 1
Church Retirement Income Accounts	p. 2
Special Definitions and Rules for 403(b) Church Plans	p. 4
Church Plan Status for a 403(b) Church Plan	p. 5
Electing (or Not Electing) ERISA Coverage	p. 10
Rules Applicable to Nonelecting Church Qualified Plans	p. 11
Failure to Qualify as a Church Plan or a Church 403(b) or 401(a) Plan	p. 17
ERISA Coverage of Church Plans	p. 18
Miscellaneous Church Plan Provisions	p. 18
Section 457 Plans	p. 1
Overview	p. 2
Eligible Plans	p. 9
Ineligible Plans	p. 24
ERISA Considerations	p. 30
Miscellaneous	p. 31
Mergers and Acquisitions	p. 1
403(b) Plan Considerations	p. 1
Severance Pay and 403(b) Plans	p. 8
457 Plan Considerations	p. 11
Designing Tax-Sheltered Annuity Plans	p. 1
Pre-tax Savings	p. 2
Impact of ERISA Coverage	p. 5
Thrift Savings Plans	p. 5
Primary Retirement Plans	p. 12
Supplemental Retirement Plans	p. 14
Tax-Sheltered Annuity Voluntary Correction Programs	p. 1
Overview of SCP	p. 2
Overview of the VCT Program	p. 11
Correction Fees and Sanctions	p. 15
Correction Procedures and Principles	p. 21
Submission Procedures and Requirements	p. 29
Other Considerations	p. 34
VCT Program Corrections	p. 35
Audit Guidelines	p. 38
403(b) Program Defects	p. 40
International Tax Treatment	p. 1
Selected Treaties	p. 3
Plan Design Considerations	p. 4
Governing Law	p. 8
Foreign Income Tax Treatment	p. 10
U.S. Federal Income Tax Treatment	p. 12
Income Tax Treaties	p. 18
International Rollovers	p. 28
Withholding on 403(b) Distributions	p. 38
U.S. Federal Estate Tax Treatment	p. 58
U.S. Expatriate Tax	p. 60
Retirement and Estate Planning for 403(b) Participants	p. 1
Estate Tax Treatment	p. 2
Gift Tax Treatment	p. 4
Funding Trusts with Retirement Plan Annuities	p. 5
Funding Charitable Gifts with Retirement Plan Annuities	p. 10
Spousal Rollovers	p. 13
Retirement Equity Act of 1984	p. 13
Table for Determining Distribution Period	p. 1
The Role of the Tax or Employee Benefits Professional in the 403(b) Arena	p. 1
Index	p. 1
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