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TABLES
* Applicable federal mid-term rates (also known as AFR), (Ch17/SecIII/PtC.2.)
* Authorities by subject matter, (Ch17/SecI/PtD)
* Compensation definitions and their uses, (Ch15/SecIV/PtG)
* Composite corporate bond rate, (Ch17/SecIII/PtC.1.a.)
* Electronic disclosure rules, (Ch13A/AppG)
* Form 1099-R distribution codes, (Ch7/SecVI/PtD.8.)
* Form 1099-R late filing penalties, (Ch17/SecII/Pt.Q)
* Form 5500 filing requirements, (Ch13A/AppA)
* Interim amendments: table of amendments adopted during or after the beginning of the EGTRRA amendment cycle, (Ch1B/Def-RemedialAmendmentPeriod/PtD.4.d)
* Life expectancy tables used for minimum distribution calculations, (Ch17/SecIII/PtA.1.)
* Minimum present value segment rates, (Ch17/SecIII/PtC.1.d.)
* PBGC interest rate used in variable rate premium calculation, (Ch17/SecIII/PtC.2.)
* PBGC interest rates to compute lump sums in private-sector plans, (Ch17/SecIII/PtC.2.)
* Pre-Approved Plans
- Table of prohibited provisions, (Ch1B/Def-PreApprovedPlan/PtC)
- Table of required or permissible provisions, (Ch1B/Def-PreApprovedPlan/PtD)
* Protected optional forms of benefit (IRC §411(d)(6)(B)), (Ch6/AppD)
* Qualified longevity annuity contracts: aggregate premium dollar limits, (Ch17/SecII/PtR)
* Quarterly interest rate charges for underpayment of taxes, (Ch17/SecIII/PtC.2.)
* Reporting and disclosure requirements, (Ch15/SecIV/PtM)
* Safe harbor 401(k) plan requirements, (Ch11/AppA)
* Sanctions affecting qualified plans, (Ch15/SecIV/PtN)
* Section 457 plans: comparison of plans sponsored by governments and by tax-exempt organizations, (Ch16/SecIII/PtA.13.)
* SEPs: comparison to profit sharing plans, (Ch12/AppE)
* Short plan year issues, (Ch15/SecIV/PtN)
* SIMPLE-IRAs compared to SARSEPs, (Ch12/AppC)
* SIMPLE-IRAs compared to SIMPLE-401(k) plans, (Ch12/AppB)
* 30-year Treasury rates, (Ch17/SecIII/PtC.1.b.)
* Weighted average interest rates, (Ch17/SecIII/PtC.2.)
- Corporate bond rate benchmarks, (Ch17/SecIII/PtC.3.a.)
- 30-year Treasury rate benchmarks, (Ch17/SecIII/PtC.3.b.)
* Yield curve segment rates
- Corporate bond yield curve segment rates used for post-2007 funding, (Ch17/SecIII/PtC.1.c.)
- MAP-21 adjustment for certain users of segment rates (segment rate stabilization rule), (Ch17/SecIII/PtC.1.c.(3))
- Minimum present value segment rates, (Ch17/SecIII/PtC.1.d.)
TARGET BENEFIT PLAN
* Accrual of benefits under a target benefit plan, see ACCRUAL OF BENEFITS
* Contribution formulas, see ACCRUAL OF BENEFITS
* Deduction limits for employer contributions, see DEDUCTION LIMITS
* Definition of target benefit plan, (Ch1B/Def-TargetBenefitPlan)
TARGET NORMAL COST, (Ch1A/Def-EBSA)
TAX COURT
* Declaratory judgment on plan qualification (IRC §7476), see APPROVAL PROCESS
* Interested party notice requirement for determination by Tax Court of plan's qualification, see APPROVAL PROCESS
TAX CREDITS
* Automatic enrollment credit (SECURE Act), (Ch7/SecXIX/PtA.)
* Employer contributions credit for small employers, (Ch7/SecXIX/PtA.3.)
* Military spouse coverage credit, (Ch7/SecXIX/PtD.)
* Retirement contributions made by lower-income works (IRC §25B and for years after 2026, IRC §6433),
see SAVER’s CREDIT and SAVER’s MATCH
* Startup credit (IRC §45E)
- Amount of credit increased by SECURE Act and SECURE 2.0 Act, (Ch7/SecXIX/PtA.1.)
- Available for new plans established by small employers, (Ch7/SecXIX/PtA)
- Small employers entitled to credit for portion of plan start-up costs incurred in first 3 years of plan, (Ch7/SecXIX/PtA)
TAX CUT AND JOBS ACT OF 2017
* Summary of pension-related provisions, (Ch15SecIX/PtU)
TAX RETURN PREPARERS
* Annual Certification Program, (Ch1B/Def-PracticeBeforeIRS/PtA.4.a.)
* IRC §6694 penalties, (Ch1B/Def-PracticeBeforeTheIRS/PtE)
* PTIN requirements, (Ch1B/Def-PracticeBeforeTheIRS/PtA.4.b.)
* Tax return preparers in retirement industry, (Ch1B/Def-PracticeBeforeTheIRS/PtA.4.b.3)a))
TAXATION OF BENEFITS
* Accident and health benefits provided by qualified plan, (Ch7/SecIII/PtB.1.)
* Age 59½: distribution before 59½ subject to penalty tax, see PREMATURE DISTRIBUTION PENALTY
* Agency arrangement: may employer act as agent for plan in issuing distribution checks? (Ch7/SecII/PtB.10.)
* Annuity contract distributed from plan, (Ch7/SecIII/PtE)
- Payments received under contract are subject to basis recovery rules, (Ch7/SecIII/PtE)
* Annuity distributions, see Basis below
* Basis ("investment in the contract")
- Annuity distributions: how basis is recovered, (Ch7/SecIII/PtD.2.)
◆ Annuity payment that is less than recovery amount, (Ch7/SecIII/PtD.2.a.5))
◆ Definition of annuity for basis recovery purposes, (Ch7/SecIII/PtD.1.)
◆ Joint and survivor annuities, (Ch7/SecIII/PtD.2.)
◆ Nonannuity payments made after annuity starting date, (Ch7/SecIII/PtD.3.d.)
◆ Participant is age 75 or older, (Ch7/SecIII/PtD.2.a.3))
◆ Payments not made monthly, (Ch7/SecIII/PtD.2.a.2))
◆ Payments under annuity contract issued by the plan, (Ch7/SecIII/PtE)
◆ Phased retirement payments, (Ch7/SecIII/PtD.6.)
◆ Transition rule under Notice 98-2, (Ch7/SecIII/PtD.2.a.7))
- Cash-out distribution repayment might generate basis, (Ch7/SecIII/PtC.3.)
- Collectibles purchased by participant-directed account result in basis, (Ch7/SecIII/PtC.2.c.)
- Deemed distributions may result in basis, (Ch7/SecIII/PtC.2.)
◆ Expatriates might be subject to deemed distributions, (Ch7/SecII/PtB.3.a.)
- Definition of basis, (Ch1A/Def-Basis)
- Disqualification of plan in prior years results in basis due to previously-taxed benefits, (Ch7/SecIII/PtC.4.)
- Elective deferrals do not generate basis, (Ch7/SecIII/PtC.1.a.)
◆ Elective deferrals designated as Roth contributions treated as basis, (Ch7/SecIII/PtC.1.c.)
- Employee contributions, (Ch7/SecIII/PtC.1.)
- Installment payments: recovery of basis rules, (Ch7/SecIII/PtD.2.a.4))
◆ Fluctuating payments because of investment experience treated as annuity distributions to extent of basis, (Ch7/SecIII/PtD.1.a.1))
. . . Fluctuations in value (e.g., foreign currency payments), (Ch7/SecIII/PtD.1.a.2))
◆ Nonannuity rules apply if fluctuation for reasons other than investment experience, (Ch7/SecIII/PtD.1.a.2))
- Minimum distribution treated as basis first to determine portion of benefit eligible for rollover, (Ch7/SecIII/PtG)
- Participant loan repayment, (Ch7/SecIII/PtC.5.)
- Pre-1987 basis subject to special recovery rules, (Ch7/SecIII/PtD.3.c.)
- P.S. 58 costs generate basis, (Ch7/SecIII/PtC.2.b.)
- Recovery of basis rules, (Ch7/SecIII/PtD)
◆ Annuity distributions, (Ch7/SecIII/PtD.2.)
◆ Death before basis fully recovered, (Ch7/SecIII/PtD.2.d.)
◆ Employee contributions may be treated as a "separate contract," (Ch7/SecIII/PtD.2.)
◆ Employer securities distributed from plan, (Ch7/SecVIII/PtC)
◆ Exclusion ratio computed for annuity starting dates before November 19, 1986, (Ch7/SecIII/PtD.2.b.)
◆ Installment payments, (Ch7/SecIII/PtD.2.a.4))
◆ Minimum distributions under §401(a)(9), (Ch7/SecIII/PtG)
◆ Nonannuity payments, (Ch7/SecIII/PtD.2.)
◆ Payments continuing beyond full recovery of basis, (Ch7/SecIII/PtD.2.c.)
◆ Pre-1987 basis recovered first, (Ch7/SecIII/PtD.3.c.)
◆ Recovery fraction for nonannuity payments, (Ch7/SecIII/PtD.3.b.)
◆ Transition rule under Notice 98-2, (Ch7/SecIII/PtD.2.a.7))
* Capital gains election for lump sum distributions, see LUMP SUM DISTRIBUTIONS
* Check treated as payment, (Ch7/SecII/PtB.1.a.1))
- Check not received, (Ch7/SecII/PtB.1.b.)
- Uncashed checks, (Ch7/SecII/PtB.1.b.1))
* Claim of right doctrine, (Ch7/SecIII/PtB.9.)
- Repayment of improper distributions, (Ch7/SecIII/PtB.9.)
* Corrective distributions
- From section 401(k) or 401(m) plans, see ADP AND ACP TESTING
- Return of elective deferrals or employee contributions to correct IRC §415 violation: tax reporting, (Ch5/SecII/PtD.1.a.2))
* Death benefits: taxation rules, see DEATH BENEFITS
* Deduction for employer contributions to plan, see DEDUCTION LIMITS
* Deemed distributions
- Basis generated from deemed distributions, (Ch7/SecIII/PtC.2.)
* Designated Roth contributions
- Elective deferrals for 401(k) or 403(b) purposes, but not excluded from gross income, (Ch7/SecII/PtA.1.a.)
- Five-year rule for determining qualified Roth distributions, (Ch7/SecIII/PtI.1.a.1))
◆ Military service: effect of make-up contributions made as Roth contributions, (Ch7/SecIII/PtI.1.a.1)i))
- Rollover options, see ROLLOVERS
- Tax rules relating to distributions from designated Roth accounts, (Ch7/SecIII/PtI.1.)
◆ Application of separate contract rule, (Ch7/SecIII/PtI.3.)
◆ Nonqualified distributions, (Ch7/SecIII/PtI.2.)
◆ Qualified distributions, (Ch7/SecIII/PtI.1.)
◆ Tacking earlier first-contribution-year through direct rollover process, (Ch7/SecIII/PtI.6.)
* Direct rollover of benefits to another plan, see ROLLOVERS
* Disability benefits may be excluded from gross income under certain circumstances (IRC §105(c)), (Ch7/SecIII/PtB.2.)
* Disqualification of plan
- Basis generated from benefits previously taxed because of disqualification in prior years, (Ch7/SecIII/PtC.4.)
- Summary of tax consequences when plan is disqualified, (Ch15/SecVI/PtA)
* Duty of consistency doctrine for reporting taxes, (Ch7/SecIII/PtB.7.)
* Elective deferrals not taxed when made, (Ch7/SecII/PtA.1.)
- Designated Roth contributions are includible in gross income when made, (Ch7/SecII/PtA.1.a.)
- Exclusion limit under §402(g), see (Ch1A/Def-ElectiveDeferral)
- FICA and FUTA liability, (Ch7/SecII/PtA.2.)
* Employer contributions not taxed when made to plan, (Ch7/SecII/PtA)
- FICA and FUTA only applies to elective deferrals, (Ch7/SecII/PtA.2.)
- Self-employed individuals include contribution in computing self-employment taxes, (Ch7/SecII/PtA.4.)
* Employer securities: special tax rules, (Ch1A/Def-Government[amp]#8221;PickUp[amp]#8221;Plan/PtC)
* ERISA settlement payments: taxability issues, (Ch7/SecIII/PtB.6.)
* Exclusion from income for employer contributions, (Ch7/SecII/PtA)
- Self-employed individuals include contribution in computing self-employment taxes, (Ch7/SecII/PtA.4.)
* Exclusion ratio calculation for annuity distributions (annuity starting dates before November 19, 1986), (Ch7/SecIII/PtD.2.b.)
* FICA and FUTA not applicable to plan distributions, (Ch7/SecVI/PtC)
* Form 1099-R used to report distributions, see REPORTING REQUIREMENTS
* Hurricanes and other disasters, see DISASTER RELIEF
* Illiquid assets: transfer to liquidating trust or partnership, (Ch7/SecIII/PtF.1.)
* Income averaging election for lump sum distribution, see LUMP SUM DISTRIBUTIONS
* Installment payments: recovery of basis rules, see Basis above
* Investment in the contract, see Basis above
* IRA distributions, see IRAs
* Life insurance in the plan: special tax rules, see INSURANCE
* Liquidating trust or partnership, see Illiquid assets above
* Litigation involving plan assets: tax issues, (Ch7/SecIII/PtF.1.a.)
* Long-term care premiums paid from account, (Ch7/SecIII/PtB.1.a.1))
* Lump sum distribution: income averaging election, see LUMP SUM DISTRIBUTIONS
* Minimum distributions under §401(a)(9): taxability issues, (Ch7/SecIII/PtG)
- Basis recovery rules: application to minimum distributions, (Ch7/SecIII/PtG)
* Net unrealized appreciation: exclusion from income, (Ch1A/Def-Government[amp]#8221;PickUp[amp]#8221;Plan/PtC)
* Noncash distribution, (Ch7/SecIII/PtF)
- Annuity contract distributed from plan, see Annuity contract above
- Liquidating trust for illiquid assets, (Ch7/SecIII/PtF.1.)
* Nonresident aliens: taxation of distributions, see NONRESIDENT ALIENS
* Nontransferable annuity contract
- Definition, (Ch1B/Def-PreApprovedPlan)
- Taxation issues relating to distribution of contract, (Ch7/SecIII/PtE)
* Overpayments
- Income tax loss available with respect to distributee's repayment to plan of excess payment amount, (Ch7/SecIII/PtB.10.)
- Overpayments to 5% owners, (Ch7/SecIII/PtB.6.)
* Participant loans: tax issues, see PARTICIPANT LOANS
* Penalties
- Distributions before age 59½, see PREMATURE DISTRIBUTION PENALTY
- Overpayments to 5% owners, (Ch7/SecIII/PtB.6.)
* Permissible withdrawal (IRC §414(w)) from an eligible automatic contribution arrangements: tax treatment, (Ch6/SecIV/Pt.C.6.c.)
* Premature distribution penalty on pre-59½ distributions, see PREMATURE DISTRIBUTION PENALTY
* P.S. 58 costs, see INSURANCE
* QDRO payments: taxation rules, (Ch1B/Def-QDRO)
* Qualified hurricane distributions eligible for 3-year ratable income inclusion election, see DISASTER RELIEF
* Recovery of basis, see Basis above
* Retired public safety employees may receive tax-free distributions to purchase health benefits, (Ch7/SecII/PtB.9.)
* Rollovers of plan distributions to defer taxation, see ROLLOVERS
* Roth contributions, see Designated Roth contributions above
* Roth conversions, see ROTH CONVERSIONS
* Roth IRAs: taxation of distributions, see ROTH IRAs
* Section 401(k) plans: taxation of corrective distributions, see ADP AND ACP TESTING
* Section 401(m) plans: taxation of corrective distributions, see ADP AND ACP TESTING
* Separate contract rule for employee contributions (IRC §72(d)), (Ch7/SecIII/PtD.2.)
- Annuity distribution, (Ch7/SecIII/PtD.4.d.2))
- Nonannuity distribution, (Ch7/SecIII/PtD.4.d.1))
- Portion of employee contracts may be treated as separate contract, (Ch7/SecIII/PtD.4.e.)
* SEPs: tax issues relating to contributions and distributions, see SEPs
* SIMPLE-IRAs: taxation of distributions, see SIMPLE PLANS
* State taxation
- State cannot tax nonresident recipient, (Ch7/SecVI/PtB.1.)
- Withholding of state taxes, (Ch7/SecVI/PtB)
* Tax basis, see Basis above
* Timing of income issues, (Ch7/SecII/PtB.1.c.)
- Uncashed checks, (Ch7/SecII/PtB.1.b.1))
* Transfer of assets
- Merger of (or transfer between) qualified plan and Puerto Rican plan, (Ch7/SecII/PtB.2.e.)
- Section 403(b) plans: transfers or mergers for qualified plans (including 401(k)) trigger taxation, (Ch7/SecII/PtB.2.b.)
- Transfer between qualified plans is not a taxable event, (Ch7/SecII/PtB.2.a.)
- Transfer from qualified plan to nonqualified plan triggers taxation, (Ch7/SecII/PtB.2.d.)
* Unauthorized distributions: tax issues arising if amount is repaid to plan, 7.37, (Ch7/SecIII/PtB.9.)
* Uncashed checks, (Ch7/SecII/PtB.1.b.1))
* Voluntary assignment of distribution payment, see ANTIASSIGNMENT RULE
* Withholding requirements on plan distributions, see WITHHOLDING RULES
* Wire transfer: when is distribution considered made? (Ch7/SecII/PtB.1.a.3))
* Wrongful denial of distribution before participant's death resulted in payment being asset of estate and not as death benefits, (Ch7/SecXIV/PtA.5.a.)
TAX-EXEMPT ORGANIZATIONS
* Churches and church plans
- Commingling of church funds with plan funds, (Ch1A/Def-ChurchPlan/PtD)
- Controlled group: special rules for church plans, (Ch1A/Def-ControlledGroup/PtC.5.)
- Definition of church plan, (Ch1A/Def-ChurchPlan/PtA), (Ch13A/SecII/PtA.2.)
◆ Supreme Court holds in the Advocate case that "principal purpose organization" can establish a church plan, (Ch1A/Def-ChurchPlan/PtA.1.a.)
◆ Tenth Circuit rules that retirement subcommittee maintaining church plan qualifies as a principal purpose organization, (Ch1A/Def-ChurchPlan/PtA.1.a.3)a))
- Election to become subject to ERISA, (Ch1A/Def-ChurchPlan/PtC)
- Exemption from Title I of ERISA for certain church plans, (Ch1A/Def-ChurchPlan)
- Good faith compliance standard for satisfying nondiscrimination testing, (Ch3A/SecIII/PtA.1.c.)
- Group trust participation, (Ch1A/Def-ChurchPlan/PtD.1.), (Ch1A/Def-GroupTrust/PtA.1.e.)
- Minimum distribution rules, see MINIMUM DISTRIBUTION RULES
- Nonelecting church plans
◆ Coverage testing rules, see COVERAGE TESTING
◆ Definition of nonelecting church plan, (Ch1A/Def-ChurchPlan/PtB)
◆ Exemption from minimum age and service requirements, see ELIGIBILITY RULES
◆ Prohibited transaction rules applied differently to such plans, (Ch14/SecIII/PtA.2.)
◆ Qualification requirements that are not applicable to nonelecting church plans, (Ch1A/Def-ChurchPlan/PtB.1.)
◆ Qualification requirements which do apply to nonelecting church plans, (Ch1A/Def-ChurchPlan/PtB.2.)
- Private letter ruling regarding church plan status, (Ch1A/Def-ChurchPlan/PtE)
◆ Interested person notice requirement, (Ch1A/Def-ChurchPlan/PtE)
- Section 415 limits: special rules, (Ch16/SecII/PtH.6.b.)
* Good faith compliance standard for satisfying nondiscrimination testing, (Ch3A/SecIII/PtA.1.c.)
* Indian tribal governments (ITGs)
- ITG plans treated as governmental plans after August 17, 2006, if plan covers employees performing essential government functions, (Ch1A/Def-GovernmentalPlan/PtD)
- Treated as nongovernmental entity for purposes of determining eligibility to sponsor 401(k) plan, (Ch1B/Def-Section401(k)Arrangement/PtB.2.)
* Profit sharing plan maintained by tax-exempt organization
- May contribute amount greater than §404(a)(3) deduction limit because §4972 excise tax not applicable, (Ch7/SecXVIV/PtL.5.a.)
* Related group rules: application to tax-exempt organizations, see RELATED ORGANIZATIONS
* Section 403(b) plans may be established by only certain tax-exempt organizations, (Ch16/SecII/PtB.1.)
* SIMPLE-IRA plans: maintenance by tax-exempt organization, see SIMPLE PLANS
TAXPAYER RELIEF ACT OF 1997
* Checklist of changes made by TRA '97, (Ch15/SecIX/PtC)
TAX-SHELTERED ANNUITY PROGRAMS, (Ch16/SecII/PtH.6.b.)
TECHNICAL ADVICE MEMORANDUM
* Citation for TAMs explained, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.2.)
* Coordination with DOL on certain issues, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.4.)
* Definition of technical advice memorandum, (Ch1B/Def-TechnicalAdviceMemorandum)
* Mandatory technical advice for certain issues, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.3.)
* Procedure for obtaining technical advice, (Ch1B/Def-TechnicalAdviceMemorandum)
* Reliance on the memorandum, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.1.)
TEFRA §242(b)(2) ELECTION, see MINIMUM DISTRIBUTIONS
TESTING METHODS
* ACP testing under IRC §401(m)(2), see ADP AND ACP TESTING
* ADP testing under IRC §401(k)(3), see ADP AND ACP TESTING
* Current year testing method, see ADP AND ACP TESTING
* Prior year testing method, see ADP AND ACP TESTING
THIRD PARTY ADMINISTRATOR (TPA)
* Fiduciary status of TPA, see FIDUCIARY
30-YEAR TREASURY RATES, see TABLES
THREE-YEAR TESTING CYCLE, see COVERAGE TESTING, NONDISCRIMINATION TESTING
TOP HAT PLANS
* Definition of top hat plan, (Ch1B/Def-TargetBenefitPlan)
* Enforcement of provisions under ERISA, (Ch13B/SecIII/PtH.2.)
* Form 5500 filing exemption, see FORM 5500
* Minimum participation, vesting and accrual standards under ERISA do not apply to top hat plans, (Ch13A/SecVII/PtC.3.)
* Rabbi trust may be used to hold assets, (Ch1B/Def-TopHatPlan/PtB)
* Section 457 plans maintained by tax-exempt organization are usually top hat plans, (Ch16/SecIII/PtA.7.a.)
* Select group of management or highly compensated employees must be only participants in plan, (Ch1B/Def-TopHatPlan/PtA)
- Bargaining power of eligible participants is important factor, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.1.)
- "Highly compensated" employees based on relationship between average compensation of participants and the average compensation of all employees, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.3.)
- Plan may cover a very small number of participants outside of the select group without failing to be a top hat plan, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.4.)
* SERPs or supplemental executive retirement plans usually structured as top hat plans, (Ch1B/Def-TargetBenefitPlan)
* Trust requirement under Title I of ERISA does not apply to top hat plan, (Ch13B/SecII/PtB.3.e.)
* Unfunded plan requirement, (Ch1B/Def-TopHatPlan/PtB)
TOP HEAVY RULES
* Aggregation of plans to determine top heavy status, see Top heavy plan below
* Catch-up contributions under IRC §414(v)
- Contributions made in prior plan years are included for purposes of determining top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.2.a.7))
- Current-year catch-up contributions disregarded when applying top heavy rules, (Ch1B/Def-TopHeavyPlan/PtA.2.a.7))
- Disregarded in determining highest key employee allocation rate for minimum contribution purposes, (Ch3B/SecIV/PtA.2.c.)
* Collectively-bargained plans
- Collectively-bargained plans: application of top heavy rules, (Ch1B/Def-TopHeavyPlan/PtB.7.)
- Minimum benefit requirements are not applicable to union employees, (Ch3B/SecIV/PtF)
- Multiemployer plans: application of top heavy rules, (Ch1B/Def-TopHeavyPlan/PtB.7.c.)
- Permissive aggregation with collectively-bargained plans, (Ch1B/Def-TopHeavyPlan/PtB.7.)
* Compensation
- Definition used to calculate top heavy minimums, (Ch1A/Def-Compensation/PtD)
* Determination date
- Determination date for aggregated plans, (Ch1B/Def-TopHeavyPlan/PtB.1.g.)
- Determination date for determining top heavy status, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.1.)
- Determination date for identifying key employees, (Ch1A/Def-KeyEmployee/PtC.1.a.)
* Frozen plans
- Defined contribution plan not required to provide any top heavy minimum because key employee allocations rates are 0%, (Ch1A/Def-Compensation/PtD)
- Top heavy minimum accrual not required with respect to years of service earned when defined benefit plan is frozen, (Ch3B/SecIV/PtB.2.a.), Ch3B/SecIV/PtE.2.)
* Key employee
- 1% owner test, (Ch1A/Def-KeyEmployee/PtA.1.b.)
- 5% owner test, (Ch1A/Def-KeyEmployee/PtA.1.a.)
- Comparison to highly compensated employee definition, (Ch1A/Def-KeyEmployee/PtI)
- Compensation used to determine key employee status, (Ch1A/Def-KeyEmployee/PtB)
◆ Short plan year, (Ch3A/SecII/PtH.1.f.)
- Definition of key employee, (Ch1A/Def-KeyEmployee)
- Determination date for determining key employees, (Ch1A/Def-KeyEmployee/PtC.1.a.)
- Employee might satisfy more than one test, (Ch1A/Def-KeyEmployee/PtE)
- Indexed dollar amounts for top ten owner test and officer test: table, (Ch17/SecII/PtF)
- Leased employees taken into account to identify key employees, (Ch1A/Def-KeyEmployee/PtH)
- Officer test, (Ch1A/Def-KeyEmployee/PtA.2.)
◆ Indexed dollar amounts for officer test: table, (Ch17/SecII/PtF)
- Ownership defined, (Ch1A/Def-KeyEmployee/PtD)
◆ Attribution rules that are applicable, see ATTRIBUTION RULES (Section 318 attribution)
- Predecessor employers, (Ch1A/Def-KeyEmployee/PtG)
◆ Acquiring assets of another company, (Ch1A/Def-KeyEmployee/PtG)
◆ Change in business form, (Ch1A/Def-KeyEmployee/PtG.3.)
- Related employers, (Ch1A/Def-Compensation/PtB.7.)
◆ Acquisition or disposition that changes related group, (Ch1A/Def-KeyEmployee/PtG.3.)
◆ Adding a new related group member, (Ch1A/Def-KeyEmployee/PtF.3.b.)
◆ Disposing of related group member, (Ch1A/Def-KeyEmployee/PtF.3.c.)
◆ Ownership not aggregated, (Ch1A/Def-KeyEmployee/PtF.1.)
- Short plan year: how it impacts the key employee determination, (Ch3A/SecII/PtH.1.f.)
- Testing period for making key employee determination, (Ch1A/Def-KeyEmployee/PtC)
◆ Five-year testing period for pre-2002 plan years, (Ch1A/Def-KeyEmployee/PtC.2.)
◆ One-year testing period for post-2001 plan years, (Ch1A/Def-KeyEmployee/PtF.1.)
◆ Short plan years, (Ch3A/SecII/PtH.1.f.)
* Leased employees: application of top heavy rules to, (Ch1B/Def-TopHeavyPlan/PtB.6.)
* Minimum accrual requirements for top heavy plans, (Ch3B/SecIV)
- Breaks in service may affect right to accrue minimum benefit, (Ch3B/SecIV/PtA.3.e.)
- Cash balance plans, (Ch3A/SecIII/PtA.1.d.)
- Correcting failure to provide minimum benefit through EPCRS programs, (Ch15/SecVI/PtC.1.)
- Coverage testing: effect of minimum accruals, see COVERAGE TESTING
- Defined benefit plans, (Ch3B/SecIV/PtF)
◆ Accrual requirements for the top heavy minimum benefit, (Ch3B/SecIV/PtE.2.)
◆ Cash balance plans, (Ch3A/SecIII/PtA.1.d.)
◆ Fully insured plans, (Ch3B/SecIV/PtB.6.)
◆ Minimum benefit formula, (Ch3B/SecIV/PtF)
. . . Benefits paid in another form, (Ch3B/SecIV/PtB.5.)
. . . Disregard years for which no key employee benefits, (Ch3B/SecIV/PtB.2.a.)
. . . Years included in minimum benefit formula, (Ch3B/SecIV/PtE.2.)
◆ Who is entitled to accrue minimum benefit, (Ch3B/SecIV/PtB.5.)
- Defined contribution plans, (Ch3B/SecIV/PtF)
◆ 401(k) plan: determining who is eligible for top heavy minimum, (Ch3B/SecIV/PtA.3.e.)
◆ Allocation requirements for the top heavy minimum contribution, (Ch3B/SecIV/PtB.5.)
. . . Catch-up contributions under IRC §414(v) are disregarded, (Ch3B/SecIV/PtA.2.c.)
◆ Compensation for entire plan year must be taken into account, (Ch3B/SecIV/PtA.1.b.)
◆ Earnings cannot satisfy minimum, (Ch3B/SecIV/PtA.4.b.1))
◆ Elective deferrals cannot satisfy minimum, (Ch3B/SecIV/PtA.4.c.)
◆ Elective deferrals of key employees count to determine minimum allocation rate, (Ch3B/SecIV/PtE.2.)
. . . Catch-up contributions under IRC §414(v) are disregarded, (Ch3B/SecIV/PtA.2.c.)
◆ Employer contributions and forfeitures must satisfy minimum, (Ch3B/SecIV/PtA.4.b.)
◆ Highest key employee rate may affect minimum, (Ch3B/SecIV/PtE.2.)
. . . Effect of having multiple plans, (Ch3B/SecIV/PtA.2.d.)
◆ Hours of service requirement cannot be imposed, (Ch3B/SecIV/PtA.3.e.)
◆ Last day employment may be required as condition for minimum allocation, (Ch3B/SecIV/PtA.3.e.)
◆ Matching contributions may satisfy minimum, (Ch3B/SecIV/PtA.4.d.)
. . . Still included in ACP test, (Ch3B/SecIV/PtA.4.d.)
* Otherwise excludable employees: disaggregation, (Ch 3B/SecIV PtA.2.f.4)), (Ch11/SecXIV, Pt H.2.d)1)d))
* Predecessor employers: application of top heavy rules, (Ch1A/Def-KeyEmployee/PtG), (Ch1A/Def-KeyEmployee/PtG)
* Related employers: application of top heavy rules to, (Ch1A/Def-Compensation/PtB.7.), (Ch1A/Def-KeyEmployee/PtG)
* Required aggregation group, (Ch1B/Def-TopHeavyPlan/PtB.1.)
* Rollovers included in top heavy determination, see Top heavy plan, definition of below
* Safe harbor 401(k) plans
- Deemed to be non-top-heavy if certain conditions are met, (Ch1B/Def-TopHeavyPlan/PtC), (Ch1B/Def-TopHeavyPlan/PtC)
◆ Employer contributions to deemed non-top-heavy plan may still be used to help plan within required aggregation group satisfy top heavy minimum, (Ch3B/SecIV/PtC.1.d.)
- Safe harbor matching contributions may be used to satisfy top heavy minimum, (Ch3B/SecIV/PtA.4.f.)
- Satisfying the top heavy minimum contribution requirement, (Ch1B/Def-TopHeavyPlan/PtC), (Ch3B/SecIV/PtA.4.f.), (Ch11/SecXIV/PtH.1.)
* Section 401(k) plan participant: eligibility to receive top heavy minimum allocation, (Ch3B/SecIV/PtA.3.e.)
* SIMPLE-IRA plans exempt from top heavy rules, (Ch12/SecV/PtG.10.)
* SIMPLE-401(k) plans exempt from top heavy rules, (Ch11/SecXIII/PtH)
* Standardized 401(k) prototype plan: use of matching contributions to satisfy top heavy minimum allocation, (Ch3B/SecIV/PtA.4.d.4))
* Terminated plans
- Included in top heavy ratio calculation, (Ch1B/Def-TopHeavyPlan/PtB.1.d.)
- Minimum accruals not required after plan terminates, (Ch3B/SecIV/PtF)
* Top heavy plan defined, (Ch1B/Def-TopHeavyPlan)
- Aggregation of plans in determining top heavy ratio, (Ch1B/Def-TopHatPlan/PtB)
◆ Collectively-bargained plans, (Ch1B/Def-TopHeavyPlan/PtB.7.)
◆ Determination date for aggregated plans, (Ch1B/Def-TopHeavyPlan/PtB.1.g.)
◆ Multiemployer plans, (Ch1B/Def-TopHeavyPlan/PtB.7.c.)
◆ Multiple employer plans, (Ch1B/Def-TopHeavyPlan/PtB.7.)
◆ Permissive aggregation, (Ch1A/Def-KeyEmployee/PtG)
◆ Predecessor employers, (Ch1A/Def-KeyEmployee/PtG)
◆ Required aggregation group, (Ch1B/Def-TopHeavyPlan/PtB.1.)
◆ Safe harbor 401(k) plans, (Ch1B/Def-TopHeavyPlan/PtC)
◆ SEPs included, (Ch1B/Def-TopHeavyPlan/PtB.1.e.)
- Alternate payees under QDROs: treatment in top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.5.c.)
- Beneficiaries: treatment in top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.5.)
- Catch-up contributions under IRC §414(v): treatment for top heavy testing purposes, (Ch1B/Def-TopHeavyPlan/PtA.2.d.), (Ch1B/Def-TopHeavyPlan/PtA.2.a.7))
- Disaggregated plan for coverage testing purposes is still a single plan for top heavy testing purposes, (Ch1B/Def-TopHeavyPlan/PtB.1.b.)
◆ Special rule for union portion of plan, (Ch1B/Def-TopHeavyPlan/PtB.7.b.)
- Distributions included in calculation, (Ch1B/Def-TopHeavyPlan/PtA2.b.)
◆ Corrective distributions from 401(k) plan, (Ch1B/Def-TopHeavyPlan/PtA.2.b.3))
◆ One-year lookback for adding back distributions, except for in-service distributions, (Ch1B/Def-TopHeavyPlan/PtA2.b.)
◆ Five-year lookback period for in-service distributions, (Ch1B/Def-TopHeavyPlan/PtA.2.b.2))
- Employee contributions included in top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.2.d.)
- Former employees: inclusion in calculating top heavy ratio, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.3.)
- Non-key employees who are former key employees are excluded from top heavy ratio, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.4.)
- QDRO payees: treatment in top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.5.c.)
- Rollovers and transfers: treatment in calculating top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.2.c.)
◆ Rollovers of SEP-IRAs and SIMPLE-IRAs, (Ch1B/Def-TopHeavyPlan/PtA.2.c.1)d))
◆ Related rollovers, (Ch1B/Def-TopHeavyPlan/PtA.2.c.1))
◆ Unrelated rollovers, (Ch1B/Def-TopHeavyPlan/PtA.2.c.2))
- Safe harbor 401(k) plans deemed not to be top heavy if certain conditions met, (Ch1B/Def-TopHeavyPlan/PtC), (Ch1B/Def-TopHeavyPlan/PtC)
- Section 401(k) deferrals included in top heavy ratio, (Ch1B/Def-TopHeavyPlan/PtA.2.d.)
- Short plan year, (Ch3B/SecII/PtD)
- Top heavy ratio determination, (Ch1B/Def-TopHatPlan/PtA)
- Valuing accrued benefits, (Ch1B/Def-TechnicalAdviceMemorandum/PtA.2.)
◆ Accrual method used to value pension plan account balances, (Ch1B/Def-TopHeavyPlan/PtA.2.a.1))
◆ Adjustments to defined contribution plan balances, (Ch1B/Def-TopHeavyPlan/PtA.2.a.)
◆ Cash method used for non-pension plans, (Ch1B/Def-TopHeavyPlan/PtA.2.a.2))
* Top heavy ratio, see Top heavy plan above
* Union employees, see COLLECTIVELY-BARGAINED PLANS above
* Union plans, see COLLECTIVELY-BARGAINED PLANS above
* Vesting requirements for top heavy plans, see VESTING RULES
TRANSFERS, see MERGERS, SPIN-OFFS, AND TRANSFERS OF PLAN ASSETS
TRUST
* Beneficiary of plan benefits: trust named as beneficiary, see MINIMUM DISTRIBUTION RULES
* Custodial account may satisfy trust requirement, (Ch1B/Def-Trust/PtA.2.)
* Definition of trust, (Ch1B/Def-Trust)
* Disqualified trust
- Taxation of distributions, (Ch12/SecV/PtI.2.)
- Adverse tax consequences can be avoided by using IRS' resolution programs, (Ch7/SecXVII/PtC.3.)
- Grantor trust rules are not applicable, (Ch7/SecXVII/PtC.2.)
- Schedule P no longer needed to start statute of limitations, (Ch7/SecXVII/PtC.1.)
* Domestic trust definition, (Ch1B/Def-Trust/PtC)
- Requirements under IRC §7701(a)(30)(E), (Ch1B/Def-Trust/PtC)
◆ Transition rule for trusts in existence on August 20, 1996, (Ch1B/Def-Trust/PtC.1.)
- Special rule for Puerto Rican trusts, (Ch1B/Def-Trust/PtC.3.)
* Exemptions from trust requirement, (Ch13B/SecII/PtB.3.)
- Cafeteria plans, (Ch13B/SecII/PtB.3.d.1))
- Fully-insured plan, see Nontrusteed plan below
- IRAs, (Ch13B/SecII/PtB.3.a.)
- Keogh plans, (Ch13B/SecII/PtB.3.b.)
- Section 403(b) plans, (Ch6/SecVII/PtB.3.)
- SEPs, (Ch13B/SecII/PtB.3.b.)
- SIMPLE-IRA plans, (Ch13B/SecII/PtB.3.b.)
- Top hat plans, (Ch13B/SecII/PtB.3.e.)
- Welfare benefit plans, (Ch13B/SecII/PtB.1.b.1)j))
* Funding policy, see FIDUCIARY DUTY
* Grantor trust rules do not apply to disqualified trust, (Ch7/SecXVII/PtC.2.)
* Group trust (Rev. Rul. 81-100; 81-100 group trusts), (Ch13A/SecII/PtC.1.)
* IRAs: exemption from trust requirement, (Ch13B/SecII/PtB.3.b.)
* Nontrusteed plan (fully-insured plan) exempt from trust requirement, (Ch13B/SecII/PtB.3.a.)
* Plan assets must be held in trust, (Ch13B/SecII/PtB)
- Exemptions from requirement, see Exemptions from trust requirement above
- Securities may be held in nominee or street name, (Ch13B/SecII/PtB.2.f.)
* Puerto Rican trusts may elect to be treated as domestic trusts, (Ch1B/Def-Trust/PtC.3.)
* Rabbi trust, see NONQUALIFIED DEFERRED COMPENSATION ARRANGEMENTS
* Reimbursement by employer of plan expenses paid from trust assets, see DEDUCTION LIMITS
* Schedule P no longer needed to start statute of limitations, (Ch7/SecXVII/PtC.1.)
* Securities may be held in nominee or street name, (Ch13B/SecII/PtB.2.e.)
* SEPs: exemption from trust requirement for, (Ch13B/SecII/PtB.3.b.)
* SIMPLE-IRA plans: exemption from trust requirement, (Ch13B/SecII/PtB.3.b.)
* Statements of investment policy, see FIDUCIARY DUTY
* Statute of limitations period if trust is disqualified, (Ch7/SecXVII/PtC.1.)
* Tax-exempt status of trust, (Ch7/SecXVII)
* Top hat plans: exemption from trust requirement, (Ch13B/SecII/PtB.1.b.1)j))
* Trustee
- Can a corporate plan sponsor serve as trustee? (Ch13B/SecII/PtA.4.a.2))
- Definition of trustee, (Ch13B/SecII/PtA.4.a.), (Ch1B/Def-Trustee)
- Directed trustee: liability issues, see FIDUCIARY LIABILITY
- Fiduciary by virtue of position, (Ch13B/SecII/PtA.4.a.)
- Fiduciary responsibilities of trustee, see FIDUCIARY DUTY
- Relief from liability for trustee when investment manager appointed, see FIDUCIARY LIABILITY
- Resignation may not be sufficient to avoid co-fiduciary liability, see FIDUCIARY LIABILITY
* Unrelated business taxable income, see UBTI