As Robertson is a case of first impression in Florida, the authors believe it addresses an issue of great importance, potentially affecting thousands of nonspouse beneficiaries of IRAs and other types of tax-qualified plans
or accounts in Florida.
Employer plans are tax-qualified plans
described in IRC Sec.
General types of tax-qualified plans
under Section 125:
Instead, the purchase is conducted in the form of a contribution, similar to other tax-qualified plans
The Code does not require tax-qualified plans
to make mandatory distributions, so only plans that make them need to be amended to comply with the automatic rollover rules.
The Internal Revenue Service (IRS) studied 401(k) plan compliance with Internal Revenue Code requirements for tax-qualified plans
But tax-qualified plans
are restrictive, requiring recipients to be chronically ill and subject to a plan of care provided by a licensed health care practitioner.
The rules for ESOPs are similar to those of other tax-qualified plans
in terms of participation, allocation, vesting, and distribution, but special considerations may apply.
Here he reviews deferred compensation from taxable subsidiaries, enhanced tax-qualified plans
, severance benefits, and consulting contracts-additional options that may be available depending on the situation of the individual executive.
Generally, deferred compensation arrangements and stock option plans are not subject to the same complicated regulations that can make administering tax-qualified plans
Most of IRAs' asset growth has come from investment gains and rollovers from other tax-qualified plans
(such as 401(k)s), and not from new contributions.
Since 1974, Congress has repeatedly reduced the benefits that can be provided in tax-qualified plans