The funding level of a pension plan is an indication of the health of the plan and the likelihood that the company will be able to pay the monthly retirement benefits when employees retire. If the pension plan is more than 100% funded, it's an overfunded plan, and that's a good thing...
Generally, an SPIA is considered to satisfy RMDs beginning in the 2nd policy year for life. So you do not need to figure RMDs with respect to the IRA money that you use to buy the annuity. By the same token, your monthly payments received fro the IRA annuity are not applied to satify...
This is the percent of each monthly payment which is considered by the IRS to be your gains or earnings in the annuity. In other words, the taxable portion is the amount of your monthly check MINUS the non-taxable portion (i.e., your original premium (or "cost basis") being returned ...
A nonqualified plan does not fall under ERISA guidelines so it does not receive the same tax advantages. They are considered to be assets of the employer and can be seized by creditors of the company. If the employee quits, they will likely lose the benefits of the nonqualified plan. The...
With flexible withdrawal rules and bonus contribution options, 457(b) plans could be an attractive way to save for retirement if your employer offers one. What is a 457(b)? A 457(b) deferred compensation plan is a type of tax-advantaged retirement savings account that certain state and ...
1. Noting "Zero" Plan Participants Participants and beneficiaries with balances in the plan are considered plan participants on Form 5500. Sometimes companies mistakenly answer that there are zero plan participants. This error is especially prevalent with new programs. 2. ...
In order to be considered qualified, retirement plans have to meet certain criteria in the IRC. These pertain to participation, contribution limits, and other characteristics. Key plan requirements include: Participation:Qualified plans generally must be made available to employees no later than the da...
When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide “investment advice”, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code. For more information regarding Morgan Stanley’s role with respect to a ...
considered benefit plan investors, their investments are no long aggregated with the investments of the ERISA/Code for purposes of calculating the 25 percent rule, resulting in greater capacity for funds choosing to remain under the 25 percent rule.The PPA also clarifies that in the context of a...
Besides the funding types of completely insured and self-insured, an association health plan can come in any of the traditional types of healthcare delivery: EPO HMO PPO An EPO is an Exclusive Provider Organization. EPOs are like HMOs with respect to in-network care limitations however they ord...