Home      Login


Discriminatory Defined Benefit Plans: Finding Retirement Gold in the Least Likely of Places  


Author:  Gerald R. Nowotny.


Source: Volume 31, Number 04, Summer 2014 , pp.47-62(16)




Journal of Taxation of Investments

next article > |return to table of contents

Abstract: 

In a world in which planning for retirement is increasingly important, but also increasingly difficult, the utilization of the exemption for employees covered by a collective bargaining agreement in Internal Revenue Code Section 410(b)(3)(A) provides a “win-win” situation for the employees and employer. The employees have the guarantee of a minimum pension plan as a result of the collective bargaining agreement while allowing the business owner to establish a pension plan with more substantial benefits—a defined benefit plan.

Keywords: defined benefit plan; discriminatory pension benefits; small business pension plans; IRC Sec. 410(b)(3)(a)

Affiliations:  1: Osborne & Osborne, PA.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $18

next article > |return to table of contents