tag:blogger.com,1999:blog-6318055043707993918.post8073067327926697969..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: A TRUE STORYRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6318055043707993918.post-18607117984775262542011-09-07T10:21:29.121-04:002011-09-07T10:21:29.121-04:00I agree union-sponsored plans are not "employ...I agree union-sponsored plans are not "employer plans" as the union is not the employer. <br /><br />Although I could not find a citation directly on point for this issue I believe it may be gleened from Reg. 1.408-2(c)(1). This regulation is referring to whether a trust is for the exclusive benefit of employees. Under this regulation:<br /><br />"A trust created or organized in the United States (as defined in section 7701(a)(9)) by an employer for the exclusive benefit of his employees or their beneficiaries, or by an association of employees for the exclusive benefit of its members or their beneficiaries, is treated as an individual retirement account if the requirements of paragraphs (c)(2) and (c)(3) of this section are satisfied under the written governing instrument creating the trust. A trust described in the preceding sentence is for the exclusive benefit of employees or members even though it may maintain an account for former employees or members and employees who are temporarily on leave."<br /><br />Because the regulation specifically refers to employers immediately before referring to unions as "an association of employees", I presume these are two separate groups. I know this isn't the best citation but it was the best I could find.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-5786074754305927792010-11-06T07:42:20.156-04:002010-11-06T07:42:20.156-04:00Anthony-
I have done a quick search of 401(a) pla...Anthony-<br /><br />I have done a quick search of 401(a) plans.<br /><br />Everything I can find about a 401(a) plan describes it as an “employer plan” – one that is set up by an employer for its employees. It is also discussed in terms of being specific to public schools, and being set up by the school district “employer” and not the teacher’s union.<br /><br />And all discussion of IRS deduction limits talk of “employer plans” – <br /><br />“the deduction you can take for contributions made to your traditional IRA whether you or your spouse was covered for any part of the year by an employer retirement plan”<br /><br />I stand by what I have said – that the Motion Picture Industry is not an “employer plan”. <br /><br />I welcome anyone else’s input on this issue.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-3255456208028225332010-11-06T06:51:49.704-04:002010-11-06T06:51:49.704-04:00Anthony-
No rest for the weary!
Thank you for ...Anthony-<br /><br />No rest for the weary! <br /><br />Thank you for your comment. I will look into the matter when I "come up for air".<br /><br />In the meantime, does anyone else out there have any comments on what Anthony has suggested? Is he correct? <br /><br />I will certainly let you know how the IRS responds to my assertions.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-50178095130097572742010-11-02T23:27:39.664-04:002010-11-02T23:27:39.664-04:00I believe you are wrong. IRC 219(g)(5) lists seve...I believe you are wrong. IRC 219(g)(5) lists several categories of people who are considered "active participants", among them those who are an active participant in "a plan described in section 401 (a)". Looking at the Motion Picture Industry Pension Plan, it appears to be structured so as to fall under IRC 401(a).Anthonynoreply@blogger.com