katieinny Posted December 14, 2007 Share Posted December 14, 2007 A client is starting a Death Benefit Only plan. The benefit is paid by the employer if the employee dies while still working. There are no salary deferrals. Are there any filing requirements for this type of plan? Link to comment Share on other sites More sharing options...
jpod Posted December 14, 2007 Share Posted December 14, 2007 Yes, unless it is eligible for the small welfare plan exemption. I think this is covered pretty well in the 5500 instructions. Link to comment Share on other sites More sharing options...
AndyH Posted April 2, 2008 Share Posted April 2, 2008 Wouldn't there be PS-58 costs? Link to comment Share on other sites More sharing options...
jpod Posted April 2, 2008 Share Posted April 2, 2008 The flavor of the original post suggested that there was no insurance involved, or at least no insurance giving the employee the right to name the beneficiary, so there would be no PS 58. Link to comment Share on other sites More sharing options...
vebaguru Posted April 13, 2008 Share Posted April 13, 2008 Since there is no insurance, there are no PS-58 costs. If there were insurance, it would be Table I, not PS-58 that governed imputation of taxable income. By self-insuring the employer gets no deduction for funds set aside to provide such a benefit until the death of the participant. Then upon a participant's death the employer gets a deduction and the beneficiary pays income tax on the distribution, which is ordinary income. If group-term life insurance were used, the employer would receive an immediate tax deduction for premiums paid, the employee would not have imputed income on the first $50,000 of benefit and the death benefit would be received tax-free by the beneficiary. Chaz 1 Link to comment Share on other sites More sharing options...
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