TAX 9873 Lecture Notes - Lecture 3: Collegehumor, Employee Benefits, Plans
Document Summary
Can get full benefits under dbp + dcp. Two employers can get max benefit as employee. Limit the annual addition to participants account for limitation year. Annual additions: cannot exceed the lesser of 100% of compensation or 56,000. Annual additions = employer contributions and forfeitures or employee contrib to 401k or after tax. Plan benefit at age 65 cannot exceed lesser of 100% of compensation over the three highest paying years or 225,000. + allowance for future pay or benefit increase. Or greater of 40% of all employees or two employees. Multi-employer plans are centrally managed by board of trustees. Permitted disparity = irs allows employers to make contribution on excess. Excess % cannot be more than lesser of 5. 7% or base % Which plans to include and what data to use. The average benefits test has two parts and it is an and test. 5 yr and 10 yr certain and continuous.
