TAX 9873 Lecture Notes - Lecture 35: Relate, Employee Retirement Income Security Act
Document Summary
Plan loans 72(p): can have a plan loan up to 100k from 401k plan: what happens if you leave company w/ outstanding loan you will be taxed on outstanding loan. Ex. you take out k + k loan. I am taxed on k + 10% excise tax for the early withdrawal. Qualified domestic relations orders: if you"re married, your spouse going to get a qualified domestic. Upon death no special treatment: when you get dist upon death from qualified plan its still subject to taxation. Disability qualified plan= taxable insurance you paid for = its after tax reason you want disability outside qualified plan, so when you get disability benefit its tax free (premiums are not as high outside of the plan) Qualified plan rules: cannot assign or alienate your benefits can name beneficiaries if name beneficiary other than a spouse must have spouse"s consent. In defined contribution, no requirement for spousal consent.
