Welcome to the BenefitsLink Newsletter for December 7, 1999 If your e-mail reader cannot display messages written in HTML format, this message is going to look very strange. This is the new, optional HTML version of the BenefitsLink Newsletter. Click on any link to jump directly to that news article or other feature. If this message seems garbled or if you do not wish to receive the HTML version for any reason, please reply to this message and I'll take you off the HTML version right away. Thanks! -- Dave Baker, Publisher (davebaker@benefitslink.com). |
The BenefitsLink Newsletter December 7, 1999
Definition of HCE - plan uses lookback year - when does new $85,000 definition apply? The consensus among practitioners appears to be that the new, higher $85,000 limit for 2000 applies to compensation earned during 2000 (not to 1999 compensation, which is capped at $80,000). Hence the new $85,000 limit would be used to determine highly compensated employees for the 2001 plan year but not the 2000 plan year. We think. Life insurance VEBAs, under Code section 419A(f)(6) Are the economic reasons for doing a 419A(f)(6) plan numerous and compelling, as argued by one attorney? Or abusive schemes to provide currently-deductible deferred compensation?
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