Category Archives: Income Taxation of Employees

How Many 457(b) Plans Do You Need?

By Jeff Chang Many cities and special districts establish and maintain more 457(b) plans than they really need. We routinely see public agencies with as many as two, three or four 457(b) plans. How and why does this happen? And, … Continue reading

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Public Agency Board Members’ Worker Classification Matters for Tax Purposes

By Jeff Chang Due to the IRS’ different treatment of private sector and public agency boards of directors, it comes as little surprise that many California special districts and public agencies continue to classify their board members as independent contractors … Continue reading

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Money Purchase Pension Plans with an “Opt-in” Feature

By Jeff Chang Almost 4 years ago, we discussed an IRS private letter ruling that raised serious concerns about public agency money purchase pension plans. The ruling allowed employees to “opt-in” to, or elect, their own rate of employee contribution. … Continue reading

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Chapter 20: Opting Into A Pick-Up Plan

By: Jeff Chang A recently issued IRS private letter ruling (PLR) puts the kibosh on the fairly common practice of allowing public agency employees to elect whether and at what level to participate in the agency’s mandatory contribution pension plan. This … Continue reading

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Chapter 15: Giving Employees Choices Can Sometimes Lead To Problems

By: Jeff Chang Because many of our public agency clients have collectively-bargained employees, we continue to see a variety of efforts by employers and their bargaining partners to make the most of limited compensation and benefits dollars.  Sometimes, the parties believe … Continue reading

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