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ERISA Outline Book Index

LaRUE CASE, see ENFORCEMENT OF ERISA

LAST DAY EMPLOYMENT REQUIREMENT FOR ALLOCATIONS

* Coverage testing: effect of last day rule, see COVERAGE TESTING

LEASED EMPLOYEES

* Certified PEOs, see PEOs below

* Change of status

- Common law employee who becomes a leased employee of the recipient, (Ch1A/Def-LeasedEmployees/PtB.4.)

- Leased employee who becomes common law employee of the recipient, (Ch1A/Def-LeasedEmployees/PtB.5.)

* Credit taken by recipient employer for contributions or benefits provided by leasing organization, (Ch1A/Def-LeasedEmployees/PtB.1.a.)

* Definition of a leased employee, (Ch1A/Def-LeasedEmployees/PtA)

* Employees of leasing organization determined under common-law principles, (Ch1A/Def-LeasedEmployees/PtA.4.)

- Leased employee must be common law employee of the leasing organization, not of the recipient, (Ch1A/Def-LeasedEmployees/PtA.4.)

* Highly compensated employee definition: treatment of leased employees, (Ch1A/Def-HighlyCompensatedEmployee/PtE)

* IRS determination on leased employee status, (Ch1A/Def-LeasedEmployees/PtD)

* Key employee definition: treatment of leased employees, (Ch1A/Def-HighlyCompensatedEmployee/PtE)

* Last day rule for allocation purposes: how to apply to a leased employee, (Ch3A/SecII/PtH.2.j.)

* Leased owner

- Definition, (Ch1B/Def-PreApprovedPlan)

* PEOs

- Certified PEOs, (Ch1A/Def-LeasedEmployee/PtA.4.b.1))

- Single-employer plan maintained by PEO violates exclusive benefit rule if worksite employees are not its common law employees, (Ch1A/Def-LeasedEmployees/PtF)

◆ Options for correcting exclusive benefit rule violation, (Ch1A/Def-LeasedEmployees/PtF.2.)

* Primary direction and control by recipient of leased employee, (Ch1A/Def-LeasedEmployees/PtA.3.)

* Professional Employer Organizations, see PEO above

* Qualification requirements affected by leased employee test, (Ch1A/Def-LeasedEmployees/PtB.1.a.)

* Related employers of recipient organization determined under IRC §144, (Ch1A/Def-LeasedEmployees/PtA)

* Safe harbor plan exception, (Ch1A/Def-LeasedEmployees/PtB.2.)

* Section 401(k) plan: participation by leased employees, see SECTION 401(k) PLANS

* Section 401(m) plan: participation by leased employees, see SECTION 401(k) PLANS

* Service for eligibility purposes, see ELIGIBILITY RULES

* Service for vesting purposes, see VESTING RULES

* Shared employee, (Ch1A/Def-Employee)

* SIMPLE-IRA plans: participation by leased employees, see SIMPLE PLANS

* Substantially full-time for at least one year, (Ch1A/Def-LeasedEmployees/PtA)

LEASED OWNER, see LEASED EMPLOYEES

LIFE EXPECTANCY PERIODS

* Determination of applicable period for minimum distributions under §401(a)(9), see MINIMUM DISTRIBUTION RULES

* Joint life expectancy tables, (§1.401(a)(9)-9), (Ch17/SecIII/PtA.1.b.) (§1.72-9)

* Single life expectancy table, (§1.401(a)(9)-9), (Ch17/SecIII/PtA.1.a.) (§1.72-9)

* Uses of life expectancy tables explained, (Ch17/SecIII/PtA)

LIFE INSURANCE, see INSURANCE

LIMITED LIABILITY COMPANY

* "Check the box" regulations allow entity to choose classification for tax purposes, (Ch1A/Def-HighlyCompensatedEmployee/PtE)

* Definition, (Ch13A/SecII/PtC.1.)

* Disregard entities, (Ch1A/Def-LimitedLiabilityCo/PtA.1.)

- Does not change character of compensation for owners of disregarded entity, (Ch1A/LimitedLiabilityCo/PtA.3.a.)

* Earned income definition applies to members of LLC, (Ch1A/Def-EarnedIncome/PtD), (Ch1A/Def-EarnedIncome/PtD)

* Limited liability partnership: definition, (Ch1A/Def-EarnedIncome/PtD)

* Section 401(k) plan maintained by LLC

- Treatment of member's elective deferrals, see ADP AND ACP TESTING, SECTION 401(k) PLANS

* Taxed as partnership as general rule, (Ch13A/SecII/PtC.1.)

LIMITED LIABILITY PARTNERSHIP, see LIMITED LIABILITY COMPANY

LIMITED PARTICIPANTS (ELIGIBLE TO MAKE ROLLOVERS BEFORE MEETING ELIGIBILITY REQUIREMENTS OF PLAN), see PARTICIPANT

LIQUIDATING TRUST OR PARTNERSHIP, see TAXATION OF BENEFITS

LISTED TRANSACTIONS

* IRC §4965 (excise tax on retirement plan managers and tax-exempt entities), (Ch1A/Def-HighlyCompensatedEmployee/PtE)

- Disclosure requirements, (Ch1A/Def-ListedTransactions/PtD.4.)

- Form 8886-T. (Ch1A/Def-ListedTransactions/PtD.4.a.)

* Penalties associated with listed transactions, (Ch1A/Def-HighlyCompensatedEmployee/PtE)

* IRC §6662A accuracy-related penalty, (Ch1A/Def-ListedTransactions/PtC)

* IRC §6707A penalty for failure to report, (Ch1A/Def-HighlyCompensatedEmployee/PtE)

LOANS, see PARTICIPANT LOANS

LONGEVITY INITIATIVES

* Deferred annuity contract investments inside a DC plan: application of QJSA rules, (Ch6/SecIII/PtB.4.)

* Partial annuitization of benefits under DB plan: clarification of IRC §417(e) interest rate requirements, (Ch6/SecIII/PtC.2.b.)

* Qualified longevity annuity contracts (QLACs) inside a DC plan or IRA, (Ch6/SecVII/PtD.2.h.)

- Aggregate premium limits, (Ch17/SecII/PtR)

* Rollover from DC plan to DB plan of same employer for purposes of annuitizing rolled over benefit, (Ch3A/SecIV/PtB.2.a.)

LOST PARTICIPANTS OR BENEFICIARIES, see MISSING PARTICIPANTS OR BENEFICIARIES

LUMP SUM DISTRIBUTIONS

Caution: The 5-year income averaging rule does not apply to lump sum distributions paid after December 31, 1999. For post-1999 lump sums, only individuals born before 1936 may qualify for an income averaging election (or capital gains election, in some cases) on the lump sum, and the income averaging calculation is a 10-year calculation at the 1986 tax rates. The materials in Section VII of Chapter 7 caution you on these legislative changes.

* Age 50 exception, (Ch7/SecVII/PtA.1.)

* Age 59½ election rule, (Ch7/SecVII/PtA)

* Aggregation of certain plans to determine balance to the credit, (Ch7/SecVII/PtB.1.d.)

* Balance to the credit must be distributed, (Ch7/SecVII/PtB.1.)

* Capital gains election, (Ch7/SecVII/PtD)

* Death benefits: application of income averaging rules for certain lump sum distributions, (Ch7/SecXIV/PtG)

* Definition of lump sum distribution for income averaging purposes, (Ch1B/Def-PreApprovedPlan), (Ch7/SecVII/PtA)

- Age 59½ election rule, see Age 59½ election rule above

- Balance to the credit, see Balance to the credit above

- Triggering events, see Triggering events below

* Election requirements, (Ch7/SecVII/PtE)

* Excess retirement distributions (IRC §4980A), special calculation for lump sum distributions, see EXCESS RETIREMENT ACCUMULATIONS AND DISTRIBUTIONS

* Five-year averaging election, see Income averaging election below

* Five years of participation required, see Years of participation rule below

* Form available under plan, see DISTRIBUTIONS

* Income averaging election, (Ch7/SecVII/PtC)

- Annuity contract distributed as part of lump sum when making separate tax calculation, (Ch7/SecVII/PtC.4.)

- Calculation of five-year income averaging tax, (Ch7/SecVII/PtC)

- Ten-year averaging permitted for certain individuals, (Ch7/SecVII/PtC.3.)

* Minimum distribution allowance, see Income averaging election above

* Net unrealized appreciation, exclusion of when part of lump sum distribution, (Ch1A/Def-Government[amp]#8221;PickUp[amp]#8221;Plan/PtC)

* QDRO payments

- Excluded from determining participant's balance to the credit, (Ch7/SecVII/PtB.1.e.)

* Payment must be within one taxable year, (Ch7/SecVII/PtB.3.)

* Related employers' plans are not aggregated, (Ch7/SecVII/PtB.1.d.4))

* Ten-year averaging election, see Income averaging election above

* Triggering event, (Ch7/SecVII/PtB.2.)

* Withholding on lump sum distributions, see WITHHOLDING RULES

* Years of participation requirement, (Ch7/SecVII/PtB.4.)