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457 Plan
The 457 plan is a type of nonqualified, tax advantaged deferred-compensation retirement plan that is available for governmental and certain nongovernmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pretax or after-tax (Roth) basis. For the most part, the plan operates similarly to a 401(k) or 403(b) plan with which most people in the US are familiar. The key difference is that unlike with a 401(k) plan, it has no 10% penalty for withdrawal before the age of 55 (59 years, 6 months for IRA accounts) (although the withdrawal is subject to ordinary income taxation). These 457 plans (both governmental and nongovernmental) can also allow independent contractors to participate in the plan, where 401(k) and 403(b) plans cannot. Changes with EGTRRA 2001 The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) made a number of changes in how governmental 457 plans are treated, the most notable of which i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tax Advantage
Tax advantage refers to the economic bonus which applies to certain accounts or investments that are, by statute, tax-reduced, tax-deferred, or tax-free. Examples of tax-advantaged accounts and investments include retirement plans, education savings accounts, medical savings accounts, and government bonds. Governments establish tax advantages to encourage private individuals to contribute money when it is considered to be in the public interest. Benefits Tax advantages provide an incentive to engage in certain investments and accounts, functioning like a government subsidy. For example, individual retirement accounts are tax-advantaged since they are tax-deferred. By encouraging investment in these accounts, there is a reduced need for the government to support citizens later in life by spending money on welfare or other government expenses. Capital gains tax rate benefits may also spur investment. Types of tax-advantaged accounts and investments Retirement plans The most ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Individual Retirement Account
An individual retirement account (IRA) in the United States is a form of pension provided by many financial institutions that provides tax advantages for retirement savings. It is a trust that holds investment assets purchased with a taxpayer's earned income for the taxpayer's eventual benefit in old age. An individual retirement account is a type of individual retirement arrangement as described in IRS Publication 590, ''Individual Retirement Arrangements (IRAs)''. Other arrangements include individual retirement annuities and employer-established benefit trusts. Types There are several types of IRAs: * Traditional IRA â Contributions are mostly tax-deductible (often simplified as "money is deposited before tax" or "contributions are made with pre-tax assets"), no transactions within the IRA are taxed, and withdrawals in retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted). Depending upon the nature ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Revenue Code
The Internal Revenue Code of 1986 (IRC), is the domestic portion of federal statutory tax law in the United States. It is codified in statute as Title 26 of the United States Code. The IRC is organized topically into subtitles and sections, covering federal income tax in the United States, payroll taxes, estate taxes, gift taxes, and excise taxes; as well as procedure and administration. The Code's implementing federal agency is the Internal Revenue Service. Origins of tax codes in the United States Prior to 1874, U.S. statutes (whether in tax law or other subjects) were not codified. That is, the acts of Congress were not organized and published in separate volumes based on the subject matter (such as taxation, bankruptcy, etc.). Codifications of statutes, including tax statutes, undertaken in 1873 resulted in the Revised Statutes of the United States, approved June 22, 1874, effective for the laws in force as of December 1, 1873. Title 35 of the Revised Statutes was ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cornell Law School
Cornell Law School is the law school of Cornell University, a private university, private, Ivy League university in Ithaca, New York. One of the five Ivy League law schools, Cornell Law School offers four degree programs (Juris Doctor, JD, Master of Laws, LLM, Master of Studies in Law, MSLS and Doctor of Juridical Science, JSD) along with several dual-degree programs in conjunction with other professional schools at the university. It was established in 1887 as Cornell University's Department of Law. Currently, the school graduates around 200 students each year. Cornell Law School is home to the Legal Information Institute (LII), the ''Journal of Empirical Legal Studies'', the ''Cornell Law Review'', the ''Cornell Journal of Law and Public Policy'', and the ''Cornell International Law Journal''. History 19th century The Law Department at Cornell opened in 1887 in Morrill Hall (Cornell University), Morrill Hall with Judge Douglass Boardman as its first dean. At that time ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Form 1099-R
In the United States, Form 1099-R is a variant of Form 1099 used for reporting on distributions from Pensions in the United States, pensions, Annuity (American), annuities, Retirement plans in the United States, retirement or profit sharing plans, Individual retirement account, IRAs, Charitable Gift Annuity, charitable gift annuities and Insurance policy, Insurance Contracts. Form 1099-R is filed for each person who has received a distribution of $10 or more from any of the above. Some of the items included on the form are the gross distribution, the amount of the distribution that is taxable, the amount withheld for tax purposes, and a code that represents the type of distribution made to plan holder. Filing Form 1099-R must be mailed to the recipients by January 31 and to the IRS by the last day of February. If the Custodian bank, custodian files with the IRS electronically, the form is due by March 31. The plan owner, the IRS and the municipal or state tax department (if appl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Enron
Enron Corporation was an American Energy development, energy, Commodity, commodities, and services company based in Houston, Texas. It was led by Kenneth Lay and developed in 1985 via a merger between Houston Natural Gas and InterNorth, both relatively small regional companies at the time of the merger. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper industry, pulp and paper company, with claimed revenues of nearly $101 billion during 2000. ''Fortune (magazine), Fortune'' named Enron "America's Most Innovative Company" for six consecutive years. At the end of 2001, it was revealed that Enron's reported financial condition was sustained by an institutionalized, systematic, and creatively planned accounting scandals, accounting fraud, known since as the Enron scandal. Enron became synonymous with willful, institutional fraud and systemic Corporate crime, corruptio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue Ruling
Revenue rulings are public administrative rulings by the Internal Revenue Service (IRS) in the United States Department of the Treasury of the United States federal government that apply the law to particular factual situations. A revenue ruling can be relied on as precedent by all taxpayers. Function and authority A revenue ruling is "an official interpretation by the Internal Revenue Service that has been published in the '' Internal Revenue Bulletin''. Revenue rulings are issued only by the National Office and are published for the information and guidance of taxpayers, Internal Revenue Service officials, and others concerned." Revenue rulings are published "to promote correct and uniform application of the tax laws by Internal Revenue Service employees and to assist taxpayers in attaining maximum voluntary compliance by informing Service personnel and the public of National Office interpretations of the internal revenue laws, related statutes, treaties, regulations, and state ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rabbi Trust
In the United States, a rabbi trust is a type of trust used by businesses or other entities to defer the taxability to the person or entity receiving (the payee) such payments as employee compensation or purchase payments in the acquisition of another business. History The Internal Revenue Service issued a private ruling in 1980 regarding the legality of a trust that members of a synagogue created to compensate their rabbi. Revenue Procedure 92-64 further clarified the acceptable rules for rabbi trusts along with a model trust document and the required features to avoid constructive receipt of income to the employee. Applications An example of a rabbi trust applying where an employee receives compensation the taxation of which is deferrable is a nonqualified deferred compensation plan. A rabbi trust may be applicable when one business purchases another business but wants to set aside part of the purchase price and defer payment as well as taxability to the payee upon the satis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Employee Retirement Income Security Act
The Employee Retirement Income Security Act of 1974 (ERISA) (, codified in part at ) is a U.S. federal tax and labor law that establishes minimum standards for pension plans in private industry. It contains rules on the federal income tax effects of transactions associated with employee benefit plans. ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries by: * Requiring the disclosure of financial and other information concerning the plan to beneficiaries; * Establishing standards of conduct for plan fiduciaries; * Providing for appropriate remedies and access to the federal courts. ERISA is sometimes used to refer to the full body of laws that regulate employee benefit plans, which are mainly in the Internal Revenue Code and ERISA itself. Responsibility for interpretation and enforcement of ERISA is divided among the Department of Labor, the Department of the Treasury (particularly the Internal Revenue Service), and t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trust (property)
A trust is a legal relationship in which the owner of property, or any transferable right, gives it to another to manage and use solely for the benefit of a designated person. In the English common law, the party who entrusts the property is known as the " settlor", the party to whom it is entrusted is known as the " trustee", the party for whose benefit the property is entrusted is known as the " beneficiary", and the entrusted property is known as the "corpus" or "trust property". A '' testamentary trust'' is an irrevocable trust established and funded pursuant to the terms of a deceased person's will. An inter vivos trust is a trust created during the settlor's life. The trustee is the legal owner of the assets held in trust on behalf of the trust and its beneficiaries. The beneficiaries are equitable owners of the trust property. Trustees have a fiduciary duty to manage the trust for the benefit of the equitable owners. Trustees must provide regular accountings of trust i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Small Business Jobs Act Of 2010
The Small Business Jobs Act of 2010 () is a federal law passed by the 111th United States Congress and signed into law by President of the United States, President Barack Obama on September 27, 2010. The law authorizes the creation of the Small Business Lending Fund Program administered by the Treasury Department to make capital investments in eligible institutions, in order to increase the availability of credit for small businesses. Provisions The provisions of the Act included: * Establishes the creation of a $30 billion lending program for community banks with assets less than $10 billion. * Increases limits on how much money a company can borrow under various Small Business Administration loan programs. * Provides $12 billion in tax cuts, including a 100% exclusion of capital gains taxes on small business investments. * Allows for small businesses to carry back general business tax credits to offset the tax burden from the previous five years. Small businesses also will be ab ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
School Districts
A school district is a special-purpose district that operates local public primary or secondary schools or both in various countries. It is not to be confused with an attendance zone, which is within a school district and is used to assign students to schools in a district and not to determine government authority. North America United States In the U.S., most Kâ12 public schools function as units of local school districts. A school district usually operates several elementary, middle, and high schools. The largest urban and suburban districts operate hundreds of schools. While practice varies significantly by state (and in some cases, within a state), most American school districts operate as independent local governmental units under a grant of authority and within geographic limits created by state law. The executive and legislative power over locally-controlled policies and operations of an independent school district are, in most cases, held by a school district's ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
