Assignment 4

Question 1

Excess Benefit Plan

Answer 1

• Provide benefits in excess of Section 415

limits on benefits and contributions

Question 2

Top Hat Plans

Answer 2

• Unfunded Plans
• Provided deferred compensation for a select
group of management or higher compensated
employees
• ERISA Title I plans but not subject to participation, vesting, funding or
fiduciary responsibility of ERISA plan

Question 3

Constructive Receipt

Answer 3

• Concept that if a taxpayer could receive
income at any time but elects to receive it later, he or she is still taxed currently because of having the non-forfeitable right to the
income.

Question 4

Economic Benefit

Answer 4

• If a taxpayer is receiving a current benefit, he or she should be taxed on the value of that benefit

Question 5

Section 409A

Answer 5

• Mandates the terms and conditions that can
be in nonqualified deferred compensation
plans