Insurers long in the business of tax-sheltered annuities
, and with strong administrative and compliance platforms, may use their expertise by helping sponsors ensure that individual contributions do not exceed annual maximums, especially if participants enroll in more than one plan.
Other types of employer-sponsored plans include SEPs, Keoghs (if you're self-employed) and tax-sheltered annuities
Although the Tax Reform Act of 1986 rationalized many of these rules, particularly for qualified pension plans and tax-sheltered annuities
, you need to examine carefully the nondiscrimination rules applicable to each benefit.
In addition, tax reform added a 15 percent excise tax on aggregate distributions from all tax-favored plans, including qualified arrangements, IRAs, and tax-sheltered annuities
But in addition to the half-step freezes, it wants to keep monthly health insurance contributions at $1,100 and eliminate district contributions to employee tax-sheltered annuities
The Employee Plans Compliance Resolution System (EPCRS) contained in Revenue Procedure 2003-44 may be used to correct failures in qualified retirement plans, simplified employee pensions (SEPs), savings incentive match plans for employees (SIMPLE IRAs) and tax-sheltered annuities
Rollovers of Traditional IRAs to Tax-Sheltered Annuities
(Section 403b Plans)
The 15% excise tax applied to excess distributions from qualified retirement plans, tax-sheltered annuities
and individual retirement arrangements (IRAs).
Excess distributions from qualified plans, tax-sheltered annuities
and IRAs that exceeded a certain threshold amount ($155,000 for 1996) were subject to a 15% excise tax under prior law.
TRA 86 also imposed a 15% excise tax on "excess distributions" from tax-qualified retirement plans, tax-sheltered annuities
, and IRAs.
Common types of retirement plans include individual retirement accounts (both Roth and regular), tax-sheltered annuities
(403(b) plans), qualified pension plans, 401 (k) plans, simplified employee plans (SEPs) and "Rabbi trusts.
These plans are also known as tax-sheltered annuities
, even though the term includes mutual funds and "incidental" life insurance.