Retirement Plans
- Retirement Plan Basics
- SEP Plans
- SARSP Plans
- SIMPLE Plans
- Qualified Plans
- Retirement Plan Tax Credits
- Pension Benefits Guarantee Corporation
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- Business Structures
- Start-up Costs
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- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Updated for 2012
Pension Benefits Guarantee Corporation
The Pension Benefits Guarantee Corporation (PBGC) is a quasi-federal agency.
The purpose of the PBGC is to protect employee pension plans (similar to FDIC insurance for bank depositors) against default of benefit payments by the employer.
Participating employers pay an annual premium to the Pension Benefits Guarantee Corporation.
- Flat-Rate:
- For 2010, 2011 and 2012, the rate for the flat-rate premium is $35.00 per participant in insured single-employer plans, while that for multiemployer plans is $9.00 per participant.
PBGC Payments to Retirees:
Retirees entitled to receive payments from the PBGC generally do no receive the full amount of the pension they were originally promised
The PBGC generally pays a smaller benefit amount offering affected retirees some financial relief.
Avoiding Inadequate Funding Problems For Defined Benefit Plans
To avoid the potential problem of not having adequate funds to provide each retiree a specific pension benefit at a future date, many companies are now using defined contribution plans to provide retirement benefits for their employees.
With a defined contribution plan:
- There is no promise of a specific benefit amount at retirement.
- The amount of the benefit depends on the accumulation of:
- Plan contributions plus
- Earnings and gains on plan assets, minus
- Losses and plan expenses.
Bonding Requirement for Qualified Plans
If you, as the employer, have control over the plan or its assets, you are required to be bonded. The idea is to protect employees should you decide to abscond with the company's loot.
Related Links
- What Are Qualified Plans?
- Deducting Plan Contributions
- Who Can Set Up a Qualified Plan
- Professional Assistance
- Qualification Rules for Qualified Plans
- Qualified Plan Participation Rules
- Restrictions on Conditions of Participation in Qualified Plan
- Minimum Vesting Standards for Qualified Plans
- Two Kinds of Qualified Plans
- Defined Contribution Plan
- Funding Requirement for Defined Contribution Plans
- Maximum Deductible Percentage for Contributions
- Defined Benefit Plan
- Funding Requirement for Defined Benefit Plans
- Annual Benefit Limit Under a Defined Benefit Plan
- 401(k) Plans
- SIMPLE 401(k) Plans
- Matching Contributions
- Nonelective Contributions
- Limit on Elective Deferrals
- Catch-Up Contributions for a 401(k) Plan
- Employee Compensation Limit
- Form W-2 Reporting for Elective Deferrals
- Automatic Enrollment in a 401(k) Plan
- Limits on Contributions and Benefits
- Contribution Restriction for Self-Employed Persons
- Figuring a Self-Employed Person's Deductible Contributions
- Special Computation for Self-Employed Persons
- Timing Deductible Contributions
- Promissory Notes
- Self-Employed Persons
- Overall Annual Contribution Limit
- Qualified Roth Contribution Program
- Early Distributions From 401(k) Plans
- Qualified Reservist Early Distributions
- Reminders
- Master or Prototype Plans
- Individually Designed Qualified Plan
- Setting Up a Qualified Plan
- Credit for Small Employer Pension Plan Startup Costs
- Credit for Qualified Retirement Savings Contributions
- Funding Requirements for Defined Benefit Plans and Money-Purchase Plans
- Reporting Requirements for Qualified Plans
- Discrimination Tests
- Top-Heavy Plan Requirements
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