CONTENTS

Part A: Retirement Planning

Overview

Chapter 1Designing the Right Retirement Plan...... 1

Chapter 2Planning for Retirement Needs...... 17

Government Benefits

Chapter 3Social Security...... 29

Chapter 4Medicare...... 39

IRAs

Chapter 5Traditional IRA...... 49

Chapter 6Roth IRA...... 57

ERISA and Tax Rules for Qualified Plans

Chapter 7Qualified Plans: General Rules for Qualification...... 63

Chapter 8Qualified Plans: Distributions and Loans...... 75

Chapter 9Estate and Retirement Planning with Qualified Plans and IRAs...... 89

Chapter 10Installing a Qualified Retirement Plan...... 103

Chapter 11Qualified Plan Investments...... 107

Chapter 12ERISA Reporting and Disclosure...... 113

Chapter 13Life Insurance in a Qualified Plan...... 121

Defined Benefit Plans

Chapter 14Defined Benefit Pension Plan...... 133

Chapter 15Cash Balance Pension Plan...... 141

Defined Contribution Plans

Chapter 16Money Purchase Pension Plan...... 147

Chapter 17Profit Sharing Plan...... 153

Chapter 18ESOP/Stock Bonus Plan...... 161

Chapter 19Savings/Match Plan...... 169

Chapter 20Section 401(k) Plan...... 173

Chapter 21Cross-Tested/Age-Weighted Plan...... 185

Other Employer Retirement Plans

Chapter 22HR 10 (Keogh) Plan...... 191

Chapter 23SIMPLE IRA...... 197

Chapter 24Simplified Employee Pension (SEP)...... 201

Chapter 25Tax Deferred Annuity...... 207

Chapter 26Nonqualified Deferred Compensation...... 217

Chapter 27Section 457 Plan...... 247

Part B: Employee Benefit Planning

Overview

Chapter 28The Process of Employee Benefit Planning...... 255

Chapter 29Designing the Right Life Insurance Plan...... 261

Chapter 30Designing the Right Health Benefit Plan...... 265

Cash Compensation

Chapter 31Cash Compensation Planning...... 271

Chapter 32Bonus Plan...... 277

Chapter 33Severance Pay Plan...... 281

Chapter 34Golden Parachute Plan...... 285

Equity Options

Chapter 35Stock Option...... 287

Chapter 36Incentive Stock Option (ISO)...... 291

Chapter 37Employee Stock Purchase Plan (Section 423 Plan)...... 295

Chapter 38Restricted Stock Plan...... 299

Cafeteria Plans

Chapter 39Cafeteria Plan...... 305

Chapter 40Flexible Spending Account...... 309

Life Insurance Plans

Chapter 41Group-Term Life Insurance...... 319

Chapter 42Split Dollar Life Insurance...... 325

Chapter 43Key Employee Life Insurance...... 333

Chapter 44Death Benefit Only (DBO) Plan...... 337

Health Coverage

Chapter 45Health Insurance...... 343

Chapter 46Health Maintenance Organization (HMO)...... 355

Chapter 47Health Savings Account (Section 223 Plan)...... 363

Chapter 48Health Reimbursement Arrangement (HRA)...... 371

Chapter 49Long-Term Care Plan...... 379

Disability

Chapter 50Sick Pay (Short Term Disability)...... 383

Chapter 51Long Term Disability Insurance...... 387

Fringe Benefits

Chapter 52“Fringe” Benefits (Section 132)...... 393

Chapter 53Company Car or Reimbursement Plan...... 399

Chapter 54Dependent Care Assistance Plan...... 405

Chapter 55Educational Assistance Plan...... 409

Chapter 56Legal Services Plan...... 413

Chapter 57Loans to Executives...... 415

Chapter 58Moving Expense Reimbursement...... 419

Chapter 59VEBA Welfare Benefit Trust...... 423

Appendices and Index

Appendix AKnowing the Rules: Government Regulations and How to Find Them...... 427

Appendix BBenefit Plans for Proprietor, Partners, and S Corporation Shareholders...... 433

Appendix CCommon Control Rules...... 437

Appendix DQualified Plan Fact Finder...... 445

Appendix ELong-Term Incentives: A Comparative Analysis...... 469

Appendix FAccounting for Benefit Plans...... 473

Appendix GThe Unauthorized Practice of Law in the Employee Benefit Area...... 477

Appendix HEthics: What the Employee Benefit and Retirement Planner Must Know...... 481

Appendix IMalpractice in Compensation Planning...... 485

Appendix JAge and Sex Discrimination...... 495

Index...... 499