purchased by an employer upon the termination of a qualified pension, profit sharing, or stock bonus plan or tax sheltered annuity
program and held by the employer until all amounts under the contract are distributed to the employee for whom the contract was purchased or to the employee's beneficiary;
* What is the limit on excludable amounts that may be contributed to tax sheltered annuity plans under salary reduction agreements?
* What is an excess contribution to a tax sheltered annuity? What is an excess aggregate contribution?
premature (or early) distribution: Generally means a distribution received from an IRA, qualified plan, or tax sheltered annuity before the participant or account owner reaches age 59 1/2.
required distributions: Amounts required under the IRC to be disbursed from an IRA, qualified plan, or tax sheltered annuity starting at the required beginning date.
Any part of the taxable portion of a distribution received after 2001 from a qualified retirement plan, tax sheltered annuity, or eligible Section 457 governmental plan can be rolled over without incurring income tax to an IRA or to any of the above listed plans.
Further, any qualified plan, tax sheltered annuity, or eligible Section 457 governmental plan must allow its participants to elect to have any distribution that is eligible for rollover treatment handled by means of a direct rollover, i.e., a trustee-to-trustee transfer.
The IRS has unveiled a Tax Sheltered Annuity
Voluntary Correction (TVC) program, allowing employers that legitimately sponsor Sec.
(4) any payment made from a qualified pension, profit sharing or stock bonus plan, or under a contract purchased by such a plan, or under an IRC Section 403(b) tax sheltered annuity
, or from an individual retirement account or annuity, or from a contract provided life insurance company employees under certain retirement plans (but such payments are subject to similar premature distribution limitations and penalties--see: Q 232, IRA; Q 437, pension, profit sharing, stock bonus; Q 495, tax sheltered annuity
An eligible retirement plan with respect to a nonRoth IRA (individual retirement account or individual retirement annuity) means an IRA, a qualified plan, a Section 403(a) annuity, an eligible Section 457 governmental plan (provided it agrees to separately account for funds received from any eligible retirement plan except another eligible Section 457 governmental plan), and a Section 403(b) tax sheltered annuity
. (2) See Q 462.
The tax sheltered annuity
is a deferred tax arrangement expressly granted by Congress in IRC Section 403(b).
Is a death or survivor benefit under a tax sheltered annuity
includable in the employee's gross estate?