CONTENTS

Part A: Retirement Planning

Overview

Chapter 1 Designing the Right Retirement Plan 1 Chapter 2 Planning for Retirement Needs 17

Government Benefits

Chapter 3 Social Security 29 Chapter 4 Medicare 39

IRAs

Chapter 5 Traditional IRA 49 Chapter 6 Roth IRA 57

ERISA and Tax Rules for Qualified Plans

Chapter 7 Qualified Plans: General Rules for Qualification 63 Chapter 8 Qualified Plans: Distributions and Loans 75 Chapter 9 Estate and Retirement Planning with Qualified Plans and IRAs 89 Chapter 10 Installing a Qualified Retirement Plan 103 Chapter 11 Qualified Plan Investments 107 Chapter 12 ERISA Reporting and Disclosure 113 Chapter 13 Life Insurance in a Qualified Plan 121

Defined Benefit Plans

Chapter 14 Defined Benefit Pension Plan 133 Chapter 15 Cash Balance Pension Plan 141

Defined Contribution Plans

Chapter 16 Money Purchase Pension Plan 147 Chapter 17 Profit Sharing Plan 153 Chapter 18 ESOP/Stock Bonus Plan 161 Chapter 19 Savings/Match Plan 169 Chapter 20 Section 401(k) Plan 173 Chapter 21 Cross-Tested/Age-Weighted Plan 185

Other Employer Retirement Plans

Chapter 22 HR 10 (Keogh) Plan 191 Chapter 23 SIMPLE IRA 197 Chapter 24 Simplified Employee Pension (SEP) 201 Chapter 25 Tax Deferred Annuity 207 Chapter 26 Nonqualified Deferred Compensation 217 Chapter 27 Section 457 Plan 247

Part B: Employee Benefit Planning

Overview

Chapter 28 The Process of Employee Benefit Planning 255 Chapter 29 Designing the Right Life Insurance Plan 261 Chapter 30 Designing the Right Health Benefit Plan 265

Cash Compensation

Chapter 31 Cash Compensation Planning 271 Chapter 32 Bonus Plan 277 Chapter 33 Severance Pay Plan 281 Chapter 34 Golden Parachute Plan 285

Equity Options

Chapter 35 Stock Option 287 Chapter 36 Incentive Stock Option (ISO) 291 Chapter 37 Employee Stock Purchase Plan (Section 423 Plan) 295 Chapter 38 Restricted Stock Plan 299

Cafeteria Plans

Chapter 39 Cafeteria Plan 305 Chapter 40 Flexible Spending Account 309

Life Insurance Plans

Chapter 41 Group-Term Life Insurance 319 Chapter 42 Split Dollar Life Insurance 325 Chapter 43 Key Employee Life Insurance 333 Chapter 44 Death Benefit Only (DBO) Plan 337

Health Coverage

Chapter 45 Health Insurance 343 Chapter 46 Health Maintenance Organization (HMO) 355 Chapter 47 Health Savings Account (Section 223 Plan) 363 Chapter 48 Health Reimbursement Arrangement (HRA) 371 Chapter 49 Long-Term Care Plan 379

Disability

Chapter 50 Sick Pay (Short Term Disability) 383 Chapter 51 Long Term Disability Insurance 387

Fringe Benefits

Chapter 52 "Fringe" Benefits (Section 132) 393 Chapter 53 Company Car or Reimbursement Plan 399 Chapter 54 Dependent Care Assistance Plan 405 Chapter 55 Educational Assistance Plan 409 Chapter 56 Legal Services Plan 413 Chapter 57 Loans to Executives 415 Chapter 58 Moving Expense Reimbursement 419 Chapter 59 VEBA Welfare Benefit Trust 423

Appendices and Index

Appendix A Knowing the Rules: Government Regulations and How to Find Them 427 Appendix B Benefit Plans for Proprietor, Partners, and S Corporation Shareholders 433 Appendix C Common Control Rules 437 Appendix D Qualified Plan Fact Finder 445 Appendix E Long-Term Incentives: A Comparative Analysis 469 Appendix F Accounting for Benefit Plans 473 Appendix G The Unauthorized Practice of Law in the Employee Benefit Area 477 Appendix H Ethics: What the Employee Benefit and Retirement Planner Must Know 481 Appendix I Malpractice in Compensation Planning 485 Appendix J Age and Sex Discrimination 495 Index 499