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.
Defined contribution plans
This two-part article covers significant developments in late 2006 and 2007 in employee benefits, focusing on updates and changes to the rules for qualified retirement plans.
Executive Summary A rollover distribution from a qualified plan may be used as a short-term loan. The PPA ’06 allows tax-free charitable contributions out of traditional IRAs of up to $100,000 in 2007. When liquidating assets, consideration should be given to the source of the funds and the order used.