Tax Planning for Retirees

Funded NonQualified Retirement Plans

  • § 10.01 Overview of Taxation of Plan Participants
  • —–[1] Plans Not Funded Through Trusts
  • —–[2] Annuities Used to Fund Nonqualified Plans
  • —–[3] Trusts Used to Fund Nonqualified Plans
  • —–[4] Annuity Payments Under a Plan Funded by a Trust or Annuity
  • —–[5] Non-Annuity Payments Under a Plan Funded by a Trust or Annuity
  • —–[6] Premature Distributions Under a Plan Funded by a Trust or Annuity
  • —–[7] Borrowing Under a Plan Funded by a Trust or Annuity
  • —–[8] Proceeds of Life Insurance Contracts
  • —–[9] Golden Parachute Payments
  • —-[10] Income Tax Withholding
  • § 10.02 Attributes of Funded Nonqualified Plans
  • § 10.03 Date Retirement Benefits May Begin
  • § 10.04 Plans Not Funded Through Trusts
  • —–[1] Taxation of Property Interests Received
  • ———-[a] Treatment of Property Interests Generally
  • ———-[b] Meaning of Substantial Risk of Forfeiture
  • —————[i] The IRS Position
  • —————[ii] The Robinson Case
  • —————[iii] Applicability [to Property Held by a Retiree
  • —————[iv] Retiree Who Is a Stockholder
  • —–[2] Taxation of Income Earned by the Plan
  • —–[3] Treatment of Forfeitures Under the Plan
  • —–[4] Taxation of Proceeds from the Sale of Plan Property
  • —–[5] Gift of Unvested Property
  • —–[6] Death of Participant Before Vesting of Property
  • —–[7] Grants of Stock Options to Employees
  • § 10.05 Annuities Used to Fund Nonqualified Plans
  • § 10.06 Trusts Used to Fund Nonqualified Plans
  • —–[1] Trust Plans Favoring Highly Compensated Employees
  • —–[2] Plan Disqualified Only Because Discriminatory
  • —–[3] Non-Discriminatory Plan Disqualified for Other Reasons
  • —–[4] Discriminatory Plan Also Disqualified for Other Reasons
  • —–[5] Nonqualified Trust Interest of a Highly Compensated Employee
  • § 10.07 Penalty Tax on Premature Trust or Annuity Distributions
  • —–[1] General Applicability of the Penalty and Exceptions
  • —–[2] Exceptions for Former Qualified Plans
  • —–[3] Funded Nonqualified Plans from Inception
  • —–[4] Plan Loans to Taxpayers or Beneficiaries
  • § 10.08 Investment in a Plan (or Plan Program) Funded by a Trust or Annuity
  • —–[1] Identification of Plan Programs
  • —–[2] Determination of Employee Investment in a Plan Program
  • ———-[a] Specified Contributions Less Previous Recovery of Investment
  • ———-[b] Investment in a Plan or Plan Program Illustrated
  • ———-[c] Trust Purchasing and Distributing an Annuity
  • § 10.09 Annuity Payments from a Trust or Annuity Contract
  • —–[1] How Annuity Payments from a Trust or Annuity May Originate
  • —–[2] Amounts Received as an Annuity
  • ———-[a] When Payments Are Taxable as Annuity Payments
  • ———-[b] Variable Annuity Payments
  • ———-[c] Interest Payments Not Annuity Payments
  • —–[3] Taxation of Annuity Payments
  • —–[4] A Plan’s Recoupment of Annuity Overpayments
  • § 10.10 Non-Annuity Distributions from a Trust or Annuity Contract
  • —–[1] Taxation of Non-Annuity  Distributions
  • —–[2] Certain Non-Annuity Payments Not Taxed
  • —–[3] Non-Annuity Payments Partially Taxed
  • —–[4] Non-Annuity Payments Fully Taxed
  • —–[5] Deduction of Loss on Final Non-Annuity Distribution
  • —–[6] Planning the Timing of a Lump Sum Distribution
  • —–[7] Lump Sum Converted to Annuity (Wholly or Partially)
  • —–[8] . Retiree Repayment of Excessive Final Distribution
  • § 10.11 Special Treatment of Distributions of Employee Contributions
  • § 10.12 Life Insurance Policy Owned by an Employer or Plan Trust
  • —–[1] Tax Treatment of Proceeds from Life Insurance Purchased by Employer or Plan
  • —–[2] Tax Treatment of Cost of Life Insurance Purchased by Employer or Plan
  • § 10.13 Plan Distributions of Disability or Medical Reimbursement Benefits
  • § 10.14 Plan Loans to Retirees
  • —–[1] Loans by Government Plans and Former Qualified Retirement Plans
  • —–[2] Loans by Other Funded Nonqualified Plans
  • § 10.15 State Community Property Laws Generally Overridden
  • § 10.16 Golden Parachute Payments
  • § 10.17 Tax Withholding Under Funded Nonqualified Plans
  • —–[1] Income Tax Withholding on Contributions and Distributions
  • —–[2] Withholding of Social Security Taxes
  • § 10.18 Tax on Net Investment Income Generally Not Applicable
  • § 10.19 Estate or Gift Tax Imposed on Plan Benefits

» Chapter 11 – EMPLOYEE STOCK OPTIONS