Retirement - Supplemental Flashcards
Gross Income Inclusions
- Taxable Interest
- Ordinary Dividends
- Business Income/Loss
- Capital Gains/Losses
- Alimony Received (Pre-2019 Divorce)
- IRA Distributions
- Pensions/Annuities/Punitive Damage Payments
- Real Estate Income
- Unemployment Income
- Taxable Social Security Payments
SEP Final Deposit Date
Filing Date + Extensions (10/15)
Top-Heavy If:
More than 60% of accrued benefits OR account balances are allocated to key employees
Actual Deferral % Test (ADP) / Actual Contribution % (ACP)
Based on HCEs
0% to 2% is “times 2”
2% to 8% is “plus 2”
Ratio % Test / Average Benefits Test
Qualified Plan must cover their non-HCEs at least 70% of the % of HCEs covered.
OR
Qualified Plan must have non-HCEs get at least 70% of the benefits that HCEs get.
IRC Section 72(t)
Equal payments subject to recapture on all payments before 59 1/2 if modified before the later of:
- 5-year period
- 59 1/2
Exception: Death/Disability
Qualified Plan Loans
Also includes TSA/403(b)
Cannot Exceed Lesser of:
50% of balance OR $50,000
What benefits can be funded through a 501(c)(9) voluntary employees’ beneficiary association (VEBA)?
Death, Medical, Unemployment, Child Care, Severance, Education, Legal, & Disability
NO Retirement or Deferred Comp
Can a stock bonus plan be integrated with Social Security?
YES
Can an Employee Stock Ownership Plan (ESOP) be integrated with Social Security?
NO
How are disability insurance benefits for S Corp owners taxed?
Completely tax-free disability benefits regardless of ownership!
What can an employee NOT do if under two related employers’ retirement plans?
Defer compensation