Retirement - Supplemental

Question 1

Gross Income Inclusions

Answer 1

• Taxable Interest
• Ordinary Dividends
• Business Income/Loss
• Capital Gains/Losses
• Alimony Received (Pre-2019 Divorce)
• IRA Distributions
• Pensions/Annuities/Punitive Damage Payments
• Real Estate Income
• Unemployment Income
• Taxable Social Security Payments

Question 2

SEP Final Deposit Date

Answer 2

Filing Date + Extensions (10/15)

Question 3

Top-Heavy If:

Answer 3

More than 60% of accrued benefits OR account balances are allocated to key employees

Question 4

Actual Deferral % Test (ADP) / Actual Contribution % (ACP)

Answer 4

Based on HCEs
0% to 2% is “times 2”
2% to 8% is “plus 2”

Question 5

Ratio % Test / Average Benefits Test

Answer 5

Qualified Plan must cover their non-HCEs at least 70% of the % of HCEs covered.

OR

Qualified Plan must have non-HCEs get at least 70% of the benefits that HCEs get.

Question 6

IRC Section 72(t)

Answer 6

Equal payments subject to recapture on all payments before 59 1/2 if modified before the later of:

1. 5-year period
2. 59 1/2

Exception: Death/Disability

Question 7

Qualified Plan Loans

Answer 7

Also includes TSA/403(b)

Cannot Exceed Lesser of:

50% of balance OR $50,000

Question 8

What benefits can be funded through a 501(c)(9) voluntary employees’ beneficiary association (VEBA)?

Answer 8

Death, Medical, Unemployment, Child Care, Severance, Education, Legal, & Disability

NO Retirement or Deferred Comp

Question 9

Can a stock bonus plan be integrated with Social Security?

Answer 9

YES

Question 10

Can an Employee Stock Ownership Plan (ESOP) be integrated with Social Security?

Answer 10

NO

Question 11

How are disability insurance benefits for S Corp owners taxed?

Answer 11

Completely tax-free disability benefits regardless of ownership!

Question 12

What can an employee NOT do if under two related employers’ retirement plans?

Answer 12

Defer compensation