This item explores the possible tax treatment when an executive purchases employer stock with a loan from the employer.
Advertisement
Topics
Employee Benefits
Employers Face New IRS Reporting Requirements for ISOs and ESPPs
Final regulations create new requirements for corporations to furnish a written statement containing certain information to an employee who exercises incentive stock options (ISOs) or who receives stock under an employee stock purchase plan (ESPP).
Bonuses Ruled Deductible in Year Paid
The IRS Office of Chief Counsel (OCC) advised that a taxpayer could take a liability for bonus payments into account only in the year the bonus payments were made.
Tax Consequences of Rollovers from Employer Plans to Roth IRAs
Starting in 2010, taxpayers are able to make rollovers from non-Roth retirement accounts to Roth individual retirement accounts (IRAs) without regard to the $100,000 modified adjusted gross income limit and (in 2010 only) will be able to benefit from a special two-year averaging provision (the taxable portion of the rollover is taxed in 2011 and 2012). In light of the expected attractiveness of such a rollover, the IRS has issued Notice 2009-75 to address the federal income tax consequences of transferring eligible rollover distributions from qualified retirement plans to Roth IRAs.
Final Regs. Affect Statutory Stock Options and Employee Stock Purchase Plans
The IRS has issued final regulations (T.D. 9470) that provide information reporting requirements for statutory stock options and employee stock purchase plans under Sec. 6039.
IRS Clarifies Rule for Contributing Unused Paid Time Off to Sec. 401(k) Plans
The IRS has issued guidance to clarify issues involving the contribution of the dollar value of unused paid time off (PTO) to the employer’s Sec. 401(k) plan.
The Benefits of Individual 401(k) Plans
This item highlights the features of the still relatively new individual 401(k) plan and shows how, in certain circumstances, this type of plan can provide for a more powerful contribution.
Final Regs. on Single-Employer Defined Benefit Plans
The IRS issued final regulations to provide guidance on (1) the determination of the value of plan assets and benefit liabilities for purposes of the single-employer defined benefit plan funding requirements, (2) the use of certain funding balances maintained for those plans, and (3) benefit restrictions for certain underfunded defined benefit pension plans.
Taxability of Employer-Owned Life Insurance Contracts
Sec. 101(j)(1) limits the amount of tax-free treatment a person (which can be any type of entity) can receive from the proceeds on an employer-owned life insurance (EOLI) contract.
IRS Provides 2009 RMD Rollover Relief for IRA, 401(k) Distributions
The IRS provided relief for taxpayers who have received required minimum distributions (RMDs) in 2009 from an IRA or similar account. Such taxpayers have until November 30, 2009 (or within 60 days of the distribution, whichever is later), to roll over the distribution into another plan.
Current Developments in Employee Benefits and Pensions (Part II)
Though 2009 featured big changes in Washington and severe challenges for plan sponsors, the year brought largely incremental changes for qualified defined benefit and defined contribution plans as the IRS and the Department of Labor (DOL) continued to interpret recent statutory guidance and Congress provided some measures of relief.
Converting Traditional IRAs to Roth IRAs in 2009
While much has been written about the new possibilities of converting traditional IRAs to Roth IRAs in 2010, advisers should not lose sight of the possible benefits of moving the timing up a year.
Current Developments in Employee Benefits and Pensions (Part I)
This two-part article provides an overview of current developments in employee benefits, focusing on new guidance regarding executive compensation and health and welfare benefits.
IRS Boosts Tax Incentives for Retirement Savings
The IRS has released several pieces of guidance designed to increase tax incentives for retirement savings.
Roth IRA Conversions in 2010
The Tax Increase Prevention and Reconciliation Act of 2005 contained a provision that allows more taxpayers to convert their traditional IRAs to Roth IRAs starting in 2010.
Making the Most of the IRA Required Minimum Distribution Holiday
The Worker, Retiree, and Employer Recovery Act of 2008 waives, for 2009 only, the required minimum distribution (RMD) rules applicable to retirement plan withdrawals, thereby allowing retirees to forgo a year’s distributions.
IRS Requests Comments on Simplified Cell Phone Substantiation Rules
In Notice 2009-46, the IRS requested comments on three new proposed methods that would simplify the substantiation requirements for employee use of employer-provided cell phones.
IRS Issues Final Regs. on Automatic Contribution Arrangements
The IRS has issued final regulations on automatic contribution arrangements for 401(k) and other eligible plans.
Qualified Plans: Partial Plan Terminations
Employers that sponsor qualified plans must monitor those plans for compliance with the Code’s requirements on partial plan terminations.
Deduction for ESOP Distributions Disallowed
The Eighth Circuit reversed a district court and held that a corporation was not entitled to a deduction for cash distribution redemptive dividends paid by the corporation’s employee stock ownership plans to plan participants who left the corporation.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
