0
How are supplemental executive retirement plans SERP taxed once the benefit is received?
Wiki User
∙ 15y ago
There are many different ways they can be set up, and many different vehicles for the funds...but generally: On set up the money put in them is NOT taxed to the employee, although the payroll handling, from the companies side, may be different. (Also certain parts of things like FICA may need to be paid up front). The executive is defferring the income...not getting it now, not getting taxed on it now. When it is withdrawn/paid out, the original salary is taxable as is the investment growth. It is normally all taxed as ordinary income, even though the investment portion may have received a capital gain treatment...however, depending on the exact set up, sometimes the gain and salary can be differentiated and is taxable as each type. The SERP administrator should explain how and why the specific plan your in works.
Wiki User
∙ 15y ago
Wiki User
∙ 15y agoCan vary from plan to plan...qualified or non-qualified is important. This can be a very complex field, some basics: All amounts deferred under a nonqualified deferred compensation (NQDC) plan for all tax years are currently includible in gross income to the extent not subject to a substantial risk of forfeiture and not previously included in gross income, unless the plan: : ... meets specified distribution, acceleration of benefit, and election requirements; and : ... is operated in accordance with these requirements. ( Code Sec. 409A(a)(1)(A)(i) ) : : If a NQDC plan doesn't comply with the Code Sec. 409A rules, all amounts deferred under the plan for the tax year and all prior tax years, by any participant to whom the failure relates, are included in income for that year to the extent not subject to a substantial risk of forfeiture and not previously included in income. This amount is also subject to: (1) interest (at the underpayment rate plus one percentage point) on the tax underpayments that would have occurred had the amount been included in income for the tax year when first deferred, or if later, when not subject to a substantial risk of forfeiture; and (2) a penalty of 20% of the compensation required to be included in income. ( Code Sec. 409A(a)(1)(B)
Add your answer:
Earn +20 pts
Are employer financed supplemental unemployment severance benefits an offset to long term disability?
A disability insurance policy can have two main categories of benefits: base benefit and supplemental benefit. Only the supplemental disability benefit can be reduced or offset by any other benefits received (including SS disability, Workers' Comp, or any other employer benefits). The base benefit will not be offset by any other benefits received.
Defined benefit pension plan?
A plan that that provides defined benefits. Supplemental Social Security offers several retirement plan for family and individuals.
Can you collect Workers Comp and Disability Insurance in the State of Mass?
Yes, the disability insurance payments can be paid on top of any workers comp payments received, if the policy's benefit is not integrated with any supplemental benefits. If your disability insurance policy is integrated with supplemental disability benefits, then the disability payments will be offset dollar for dollar by any mount received from workers comp or social security. That's why when you get a disability insurance policy, it is advised to include all or most of the disability benefit amount as "base benefit" which does not offset by any supplemental benefits received.
Which defined benefit plan is part of which employee benefits?
retirement ;)
Can met life reduce disability payments by the amounts received from naval reserve retirement pension?
The portion of benefit called "Social Insurance Offset Benefit" can be reduced by any amounts received as disability or pension benefits. Also, depending on the definition of total disability and any additional riders that can enhance the definition of disability, including residual or partial benefit rider, your benefit may be reduced if you have income from a different source. Normally, retirement pension does not reduce the BASE benefit, because it's not an income from an active job/ occupation.
Is retirement benefit taxable?
Sure is.
Is there supplemental disability insurance?
Yes, and it's recommended to add supplemental disability insurance to cover closer to 100% of your income. If you have disability insurance through your employer, your benefit will be capped at 66% of your income. The benefit received from a group disability policy (through your employer) is taxable. Supplemental disability insurance benefits are not taxable. You can add Catastrophic rider on an individual disability insurance policy, to cover up to 100% of your income in combination with your existing employer group DI.
Which of the following is NOT a retirement benefit under the Blended Retirement System.?
Continuation Pay
Born in 1975 what would be my retirement age to get maximum social security benefit?
To get your full retirement benefit, you need to be 65 or older. That will be in the year 2040.
Can you have a full time job and receive retirement benefits?
Not normally, as full time employment would earn you more money than allowed with the amount of benefit received.
Who determines benefit levels for the Supplemental Security Income program?
Each state has its own benefit level amount. Go to the SSA.gov web site and at the top of the page choose Supplemental Security Income Click on the below Related Link
What is the social security health care program called?
Depends on which program you're refering to. If you're referring to retirement or Social Security Disability benefits, it's Medicare. There is also Medicaid for Supplemental Security Income recipients, a federal welfare type benefit, based on the same disability criteria as the Social Security Disability benefit program.
