In a combination plan, retirement benefits are funded with a combination of

Which of the following are requirements [as set out in Code section 4975(d)(1)] that must be met before loans from a qualified plan may be allowed?(I)loans are available to all participants and beneficiaries on a reasonably equivalent basis(II)loans are not made available to highly compensated employees in an amount greater than for other employees(III)loans bear reasonable rates of interest(IV)loans are adequately secured

An employee who receives tax-free benefits under a dependent care plan also can use the dependent care tax credit on their personal tax return as long as legal maximums related to total dollar amount of dependent care are not exceeded.

Arthur Beech turned 67 this year. Arthur has a split dollar plan with his employer, Seashore Rental Properties. Arthur could replace this split dollar plan with a DBO plan and reduce his expenditures for insurance while still retaining a death benefit.

Benefits paid to the employee’s beneficiary under a DBO plan are taxable in full to the beneficiary as ordinary income.

When installing a DBO plan, the corporation is required to file a plan document with the government in addition to any ERISA reporting requirements.

Arthur Beech turned 67 this year. Arthur has a split dollar plan with his employer, Seashore Rental Properties. Arthur could replace this split dollar plan with a DBO plan and reduce his expenditures for insurance while still retaining a death benefit.

Benefits paid to the employee’s beneficiary under a DBO plan are taxable in full to the beneficiary as ordinary income.

An employee who receives tax-free benefits under a dependent care plan also can use the dependent care tax credit on their personal tax return as long as legal maximums related to total dollar amount of dependent care are not exceeded.

A self-employed person can use a money purchase plan to fund his or her own retirement.