lbell

Austin 3515 There is an approach now permitted after this summers final regulations on 457(f). I have attached a one pager and article and radio interview on the planning tool. Please feel free to reach out to me if you are interested in seeing how it works lbell Non Profit Death Benefit Plan.pdf New Regulations Affect §457 Plans for Non Profits - Accounting and Financial Planning for Law Firms Article - Law Journal Newsletters.html

The actuary may provide a report every two years. The report will explain the size of the liability the value of the assests and the Annual required contribution(ARC). This material must be reflected on the required supplemental information (RSI). The actuary's report does not set up a plan or address what should be done to address any underfunding.

Jim try Lynchval Systems Worldwide - they do backroom support for PBGC and a number of large providers under their private label. www.lynchval.com

Try looking at Rev. Rul 77-261,1977-2 C.B. 45 , Rev. Rul 90-74, 1990-2 C.B. 34 and PLR 200606007. Additionally the GASB Implementation Guide and the Web site are very helpful www.gasb.com . There is an interactive Technical Inquiry procedure with the website that works very well. You get a contact back within 24-48 hours with your answer and additional help.

This sounds like a 419 type plan that may or maybenot effected by 419 rules that were issued in 2003? Generally speaking the distributions from a welfare benefit plan are taxable or non taxable based upon other sections of the IRS Code.

There is a program i have used that is a Fiduciary audit arrangment that can be implemented that has had a good trackrecord with IRS and DOL for mitigating damages. you may be interested in following up with suggesting the program as an ongoing tool that would both wave the damages and assure that there were no reoccurrences. There is an E/O carrier behind the audit that would pick up the downside risk.This is a permissible cost of the plan.

ADDITIONALLY, HR 4520 as passed new Sec.409A will be a gotcha for amounts (and their earnings)deferred after June 3,2004

The Regs list a death benefit as a permissible plan benefit but you have to check the Plan documents and Initial 1023 filing to see what is set forth.It shouldnot be difficault to amend the plan docs and file with the Service - but will you have sufficiaent funding because its got to be across the board benefit for a covered members/

Dave F Please fax me the Plr 301 656 4128 Thank you larrybell

This is a very interesting point can some one provide the PLR cite? I found the May 4th FOIA to Greg Jenner but I could not dig up the April PLR Thank you for your help

M bozek - S1637 defines non qualified deferred compensation in such a way that doesnot distinquish for profit or non profit employers. There is a reference in (d) (1)(6) to EXCEPTION FOR NONELECTIVE DEFERRED COMP by reason of 457(e)(12). That leads me to believe that S1637 blankets everything else. I donot believe that complying with 457(f) would give you a safeharbour for not complying with the S1637 rules.

The House points(HR2896) are somewhat similar to S1637 ,and its seeds being in an ENRON related sweep all lean toward a possibility of enactment. Also it being a part of the WTO mandated compliance there becomes an independent/rational reason for enactment. AALU is supportive as the proposed law as does not repeal the 1978 moratorium on Sec. 132 .While its not over til its over I bet you a cookie we get something very similar to the Senate bill.

Not to beat a dead horse. The discussion have been very helpful- If in fact an endorsement of the death benefit is made to the employee who in turn may assign it to a trust(a transfer taxable event) Is the subsequesnt termination or lapsing of the endorement a taxable event to either the owner or non owner?. I have not seen any basis for it being a taxable event.

A tax exempt organization providing deferred compensation must follow 457. There is a good article in the May/June 2003 Journal of Compensation that walks thru these issues. It is futrther limited by the new Split Dollar regs and the end of options as a viable planning tool for tax exempts.

I have seen two different appraches. The accrual base taxpayer can accrue at yearend but must contribute within 75 days like old profit sharing rules. The National Presto case stopped the ability to accrue also you've got to follow the 419/419A qualified asset account rules so be prudent.

This situation creates a problem both from the creditors claims issue and the consideration for taking the responsibility for the def comp/ What is the consideration ? You probably should also check the underlying def Comp agreemnt you may be triggering a taxable event to the employee even though they donot have actual receipt of the funds,