CONTENTS

Page

Dedication                                                                                                                                             iii

About the Authors................................................................................................................................. v

Preface                                                                                                                                                vii

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...................................................................................................... 171

Chapter 20     Section 401(k) Plan....................................................................................................... 175

Chapter 21     Cross-Tested/Age-Weighted Plan.................................................................................. 187

Other Employer Retirement Plans

Chapter 22     HR 10 (Keogh) Plan..................................................................................................... 193

Chapter 23     SIMPLE IRA............................................................................................................... 199

Chapter 24     Simplified Employee Pension (SEP)............................................................................... 203

Chapter 25     Tax Deferred Annuity................................................................................................... 209

Chapter 26     Nonqualified Deferred Compensation............................................................................. 219

Chapter 27     Section 457 Plan........................................................................................................... 249

Part B: Employee Benefit Planning

Overview

Chapter 28     The Process of Employee Benefit Planning.................................................................... 257

Chapter 29     Designing the Right Life Insurance Plan......................................................................... 263

Chapter 30     Designing the Right Health Benefit Plan......................................................................... 267

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)...................................................................... 353

Chapter 47     Health Savings Account (Section 223 Plan).................................................................... 361

Chapter 48     Health Reimbursement Arrangement (HRA).................................................................. 369

Chapter 49     Long-Term Care Plan................................................................................................... 377

Disability

Chapter 50     Sick Pay (Short Term Disability).................................................................................... 379

Chapter 51     Long Term Disability Insurance..................................................................................... 383

Fringe Benefits

Chapter 52     “Fringe” Benefits (Section 132)..................................................................................... 389

Chapter 53     Company Car or Reimbursement Plan........................................................................... 395

Chapter 54     Dependent Care Assistance Plan................................................................................... 401

Chapter 55     Educational Assistance Plan.......................................................................................... 405

Chapter 56     Legal Services Plan...................................................................................................... 409

Chapter 57     Loans to Executives...................................................................................................... 411

Chapter 58     Moving Expense Reimbursement................................................................................... 415

Chapter 59     VEBA Welfare Benefit Trust........................................................................................ 419

Appendices

Appendix A    Knowing the Rules: Government Regulations and How to Find Them............................... 423

Appendix B    Benefit Plans for Proprietor, Partners, and S Corporation Shareholders............................ 429

Appendix C    Common Control Rules................................................................................................. 433

Appendix D    Qualified Plan Fact Finder............................................................................................. 441

Appendix E    Long-Term Incentives: A Comparative Analysis............................................................. 465

Appendix F     Accounting for Benefit Plans......................................................................................... 469

Appendix G    The Unauthorized Practice of Law in the Employee Benefit Area................................... 473

Appendix H    Ethics: What the Employee Benefit and Retirement Planner Must Know.......................... 477

Appendix I     Malpractice in Compensation Planning........................................................................... 481

Appendix J     Age and Sex Discrimination.......................................................................................... 491

 

INDEX                                                                                                                                              495