CHAPTER 7 TAXATION RULES

This chapter addresses the taxation rules applicable to qualified plans. First the tax rules applicable to the employees are addressed: the exclusion of the employer’s contribution from income (Section II), the computation of the taxable amount at the time of distribution (Section III), rollovers (Section IV), withholding (Section VI), distribution issues relating to participant loans (Section IX), deemed distributions relating to investments in life insurance (Section X) and collectibles (Section XI), and special tax treatment for distributions of employer securities (Section VIII). Penalties and excise taxes imposed on certain distributions a