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Product Line
Wolters Kluwer Legal & Regulatory U.S.
ISBN-13
9781543881370
Availability
Ships in 3-5 Business Days
Publish Frequency
Annually
Last Updated
2024-12-19

Overview

Pension Distribution Answer Book, 2025 Edition, provides expert guidance on the complex rules governing pension plan distributions. This comprehensive and easy-to-use resource guides the subscriber through the labyrinth of legal, administrative, and tax requirements for all types of distributions from qualified retirement plans.

Table Of Contents

CHAPTER 1: In-Service Distributions

  • Profit-Sharing Plans
  • Hardship Distributions
  • Pension Plans
  • Employee Stock Ownership Plans
  • Qualified Birth or Adoption Distributions
  • Emergency Personal Expense Distributions
  • Distributions to Domestic Abuse Victims
  • Distributions to Individuals with a Terminal Illness
  • Qualified Disaster Distributions
  • Coronavirus-Related Distributions

CHAPTER 2: Loans

  • General Rule: Loans from Qualified Employer Plans
  • Treated as Taxable Distributions
  • Treatment of Distributions Attributable to Qualified Retirement Plan Loans
  • Special Loan Rules for Certain Disaster Victims
  • Special Loan Rules for Individuals Affected by the COVID-19 Pandemic
  • Loans as Prohibited Transactions
  • Spousal Consent for Loans Made by Plans Subject to the Survivor Annuity Requirements
  • Federal Truth in Lending Act

CHAPTER 3: QDROs and Other Exceptions to the Anti-Alienation Rules

  • General Rules and Definitions
  • Form or Amount of Benefits May Not Be Altered
  • How QDROs Affect Other Retirement Plan Benefits; Section 415 Requirements
  • Alternate Payee’s Retirement Plan Benefits Must Be Clearly Specified
  • QDROs Must Specify the Benefit Period and the Retirement Plan
  • Retirement Plan Provisions and Written Procedures for Determining the Qualified Status of a DRO
  • Procedures to Follow After a Retirement Plan Receives a DRO
  • Taxation of Retirement Plan Distributions Made Under QDROs
  • Official Guidance on Drafting, Reviewing, and Administering QDROs
  • Permitted Offsets of Retirement Plan Benefits

CHAPTER 4: Required Minimum Distributions

  • Waiver of Required Minimum Distributions
  • Minimum Distribution Requirement in General
  • RMDs Beginning During a Participant’s Lifetime (Lifetime RMDs)
  • Post-Death RMDs from Defined Benefit Plans
  • Post-Death RMDs from Defined Contribution Plans
  • Determination of the Designated Beneficiary
  • Determining RMD Amounts Under Defined Contribution Plans
  • Determining RMD Amounts Under Defined Benefit Plans and Annuity Contracts
  • Rollovers and Transfers
  • Special Rules
  • IRS Field Directive to Employee Plans (EP) Examiners

CHAPTER 5: Corrective Distributions

  • Excess Contributions
  • Excess Aggregate Contributions
  • Excess Elective Contributions
  • Excess Annual Additions

CHAPTER 6: Taxable Life Insurance Costs

  • Calculation of Taxable Insurance Costs

CHAPTER 7: Bankruptcy

CHAPTER 8: Vesting

  • General Vesting Rules
  • PPA Changes Effective for Post-2006 Plan Years
  • Top-Heavy Rules
  • Determination of Top-Heavy Status
  • Death Benefits, Rollovers, and Plan-to-Plan Transfers
  • Key Employees
  • Top-Heavy Vesting Schedules
  • Determination of Years of Vesting Service
  • Breaks in Service
  • Amendments in Vesting Schedules
  • Forfeitures and Cash-Out Rules
  • Required Vesting upon Plan Termination, Partial Termination, or Complete Discontinuance of Contributions

CHAPTER 9: Administrative Determination of Benefits

  • Determining Account Balances in Defined
  • Contribution Plans
  • Cash-Out Rules
  • Underfunded Defined Contribution Plans
  • Determining Accrued Benefits in Traditional Defined Benefit Plans
  • Determination of Accrual of Service
  • Benefit Minimums and Limitations
  • Lump-Sum Determination
  • Determining Benefits in Non-Traditional Plans

CHAPTER 10: Optional Forms of Benefit and Protected Benefits

  • Nondiscrimination Rules Under Code Section 401(a)(4)
  • Permissive Aggregation of Certain Benefits, Rights, or Features
  • Code Section 411(d)(6) Protected Benefits

CHAPTER 11: QJSA and QPSA Rules

  • Overview
  • Retirement Plans Subject to Survivor Annuity Requirements
  • Transferee, Offset, Frozen, and Terminated Plans
  • Applying Survivor Annuity Requirements to Participants
  • Annuity Starting Date
  • Benefits
  • Timing of QJSA Distributions
  • Rules Governing the QPSA
  • Applying Survivor Annuity Requirements to Plan Loans
  • Applying Survivor Annuity Requirements to Unmarried Participants, Surviving Spouses, and Participants Who Have a Change in Marital Status
  • Spousal Consent Requirement
  • Participant’s Waiver of a QPSA or QJSA
  • Notice Requirements
  • Subsidized Survivor Benefits

CHAPTER 12: Retirement, Disability, and Death

  • Normal Retirement
  • Early Retirement
  • Late Retirement
  • Phased Retirement
  • Longevity Annuities
  • Suspension of Benefits
  • Disability Benefits
  • Disability Benefits in Defined Contribution Plans
  • Disability Benefits in Defined Benefit Plans
  • Death Benefits in Defined Contribution Plans
  • Death Benefits in Defined Benefit Plans
  • Required Minimum Distribution Rules

CHAPTER 13: Other Termination of Employment Issues

  • General Considerations
  • ESOPs
  • Suspension of Benefits
  • Claim for Benefits

CHAPTER 14: Restrictions on Distributions

  • Historical Perspective
  • Application of Benefit Restriction Rules
  • Use of Collateral Agreements
  • Code Section 436 Rules on Restricted Distribution

CHAPTER 15: Plan Termination Issues

  • General Requirements
  • Defined Contribution Plans
  • Defined Benefit Plans
  • Liquidating Plan Assets
  • Surplus Assets
  • Distribution of Election Forms
  • Final Disclosure Forms
  • Abandoned Defined Contribution (Orphan) Plans

CHAPTER 16: The Termination Process for Single and Multiple Employer PBGC-Covered Plans

  • Coverage
  • PBGC Termination Steps
  • Notice of Intent to Terminate
  • Preliminary Information for PBGC
  • Measurement of Benefit Liabilities
  • Insufficiency of Plan Assets
  • Actions of Plan Sponsor
  • ERISA Section 204(h) Notice
  • Information Gathering
  • Notice of Plan Benefits
  • Final Stages
  • When the Plan Has Surplus Assets
  • Missing Participants
  • Post-Distribution Certification
  • Spinoff/Termination Transaction Rules
  • Final Returns/Reports

CHAPTER 17: Underfunded Plans

  • Underfunded PBGC-Covered Defined Benefit Plans
  • Involuntary Terminations
  • PPA Requirements for Distress and Involuntary Terminations
  • Defined Benefit Plans Not Covered by the PBGC
  • Making Contributions to Meet Plan Liabilities
  • Underfunded Defined Contribution Plans

CHAPTER 18: Taxation of Periodic Payments

  • Understanding Basic Concepts
  • Simplified Method of Basis Recovery and Transition Rule
  • Fully Taxable Annuity Payments

CHAPTER 19: Taxation of Nonperiodic Payments

  • Annuity Starting Date
  • Various Types of Taxable Distributions and Transfers
  • Lump-Sum Distributions
  • Five-Year Forward Income Averaging
  • Ten-Year Forward Income Averaging
  • Capital Gains Treatment
  • Special Lump-Sum Distribution Issues

CHAPTER 20: Additional Taxes

  • Additional 10 Percent Income Tax on Early Distributions
  • Excise Tax on Failure to Make RMDs

CHAPTER 21: Direct Rollovers

  • Direct Rollover Option Required
  • Eligible Rollover Distributions
  • Section 402(f) Rollover Notice
  • Rollover Contributions by Employees Not Yet Eligible to Participate in a Qualified Plan
  • Other Direct Rollover Issues

CHAPTER 22: State Income Tax Withholding and FICA and FUTA Treatment

  • Survey of State Income Tax Withholding Rules
  • FICA and FUTA Treatment of Qualified Plan Distributions
  • State “Source” Taxation of Retirement Benefits

CHAPTER 23: Plan Disqualification and Self-Correction Programs

  • Disqualification Events
  • Alternatives to Plan Disqualification—SCP, VCP, and Audit CAP
  • Program Eligibility
  • Consequences of Plan Disqualification

CHAPTER 24: Federal Income Tax Withholding

  • Federal Income Tax Withholding on Eligible Rollover Distributions That Are Not Rolled Over
  • Federal Income Tax Withholding on Periodic and Nonperiodic Payments That Are Not Eligible Rollover Distributions

CHAPTER 25: Distributions In-Kind

  • In General
  • Optional Form of Benefit Rules
  • Operational Rules
  • Tax Withholding Requirements
  • Rollover Rules
  • Treatment of Life Insurance and Annuity Contracts
  • Distribution of Employer Securities

CHAPTER 26: Trustee-to-Trustee Transfers

  • Retirement Plan Mergers, Consolidations, and Asset Transfers
  • Application of the Merger, Consolidation, and Transfer Requirements to Retirement Plan Spinoffs
  • Retirement Plan Mergers or Consolidations

CHAPTER 27: Reporting Distributions: IRS Form 1099-R

  • Overview
  • General Requirements
  • Line-by-Line Explanation
  • Electronic Filing
  • Correcting Form 1099-R
  • Combined Federal/State Filing Program

CHAPTER 28: Rollovers

  • Review of the Basics
  • Challenges in IRA Rollovers
  • Advantages and Disadvantages of IRA Rollovers
  • Roth IRAs

CHAPTER 29: Lump-Sum Distributions

  • Review
  • Calculating Taxable Amounts
  • Economic Issues
  • Impact of Other Taxes
  • Advantages and Disadvantages of Lump-Sum Distributions

APPENDIX A: 120 Percent of Federal Mid-Term Rate

APPENDIX B: Pre-GATT Section 417(e) Interest Rates

APPENDIX C: 30-Year Treasury Securities Rates

APPENDIX D: Single Life Table

APPENDIX E: Joint Life and Last Survivor Table

APPENDIX F: Mortality Tables

APPENDIX G: Determination of HCEs

APPENDIX H: Minimum Present Value Segment Rates

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