"The highly compensated participant argued that only the portion of the benefit that accrued during 2004, which was the only year for which the statute of limitations was still open, could be included in his income. The IRS argued that ... even though the benefits had accrued over a number of years,... the participant should be taxed on the entire vested benefit in the year the plan was disqualified. The court agreed with the IRS: Because the participant had never paid tax on any of the accrued benefit, the entire vested benefit was included in income in that year." [Yarish v. IRS, U.S. Tax Court No. 24096-08 (Oct. 4, 2012)]  MORE >>