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Article: Nondiscrimination rules now govern tax-sheltered annuity plans. (Tax Reform Act of 1986) (column)
- Article from:
- Healthcare Financial Management
- Article date:
- July 1, 1989
- Author:
CopyrightCOPYRIGHT 1989 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Nondiscrimination rules now govern tax-sheltered annuity plans
Many tax-exempt employers offer tax-sheltered annuity programs to their employees as part of their compensation and benefits packages.
Prior to 1989, these arrangements were not subject to coverage or other nondiscrimination rules. Therefore, employers could limit coverage under these arrangements to executives or could provide larger benefits to executives than the benefits provided to rank and file employees.
Beginning in 1989, this limited coverage opportunity is no longer available. The Tax Reform Act of 1986 added new coverage and nondiscrimination rules to the rules governing ...