Alternative Means To Satisfy The Nondiscrimination Requirement Imposed by the Internal Revenue Code On 401(k) Plans
- Topics:
- Regulatory issues
- Tags:
- 401(k),
- Retirement Plans,
- Reed Elsevier Inc.,
- Investment,
- Internal Revenue Code,
- Human Resources,
- Free Trade,
- Financial Planning,
- Finance,
- Employer,
- ...
- Source:
- Reed Elsevier
FREE Registration is required
Vendor Registration: required
Overview: Any employer who maintains a qualified 401(k) plan knows that the plan is an important tool for retaining employees and provides extraordinary tax benefits to the employer and the employee. The employer receives a current deduction for amounts it contributes to the plan and the employee can elect to defer income by contributing "pre-tax" dollars to it. The assets grow inside the plan tax-free, and the employee does not recognize income until he or she actually receives distributions from the plan. This article discusses two recent developments which provide employers with options to satisfy the nondiscrimination requirements, or at least reduce the chance the plan will fail the tests. However, the rules governing 401(k) plans are quite extensive. If one is considering any of the options discussed in this article, he/she must consult a tax professional.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jan 2003 | Pages: 1
