There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan
A cafeteria plan is a flexible spending account created in section 125 of the Internal Revenue Code that allows participants to pay their health insurance premiums and other employee benefit expenses through a tax-qualified plan
The retirement income the employee elects to defer is deposited in a DROP account and payable in a lump sum at the end of five years - often totaling hundreds of thousands of dollars - or rolled over to a tax-qualified plan
Since deferred compensation paid by a taxable entity outside of a tax-qualified plan
is not subject to Section 457, income tax can be deferred until the compensation is paid even if the executive's rights to the benefits are fully vested-as long as the benefits are unfunded (i.
It is important to try to plan to maximize benefits in any tax-qualified plan
that your employer offers, including 401(k) plans.
The IRS considers premiums paid for a tax-qualified plan
as an unreimbursed medical expense.
Compared with employee stock purchase plans qualifying under section 423 and other tax-qualified plan
arrangements, however, ISOs offer greater flexibility because they are not subject to minimum participation and nondiscrimination rules.
If the annuity will fund an IRA or other tax-qualified plan
, the tax deferral feature offers no additional value.
New proposed regulations (NPRM REG-126967-03) provide that any life insurance contract transferred from an employer or a tax-qualified plan
to an employee is taxable at fair market value (FMV).
Benefits under a Section 457(a) plan are subject to income tax when they are paid (or made available), timing generally similar to that of a Section 401(k) or other tax-qualified plan
This perception, however, does not mean that a non-tax-qualified plan
will automatically have more liberal benefit triggers than tax-qualified plans
The tax-deferred feature is not necessary for a tax-qualified plan