by Jeff Chang | Mar 9, 2020 | 401(a), Plan Qualification
There appears to be some confusion among California municipalities about 401(a) opt-in plans use and an employee’s ability to make a one-time irrevocable election to make pre-tax contributions. Because these plans are designed to give participants individual...
by Jeff Chang | May 20, 2019 | Income Tax, Pension
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. It was expected...
by Jeff Chang | Aug 25, 2015 | Income Tax, Pension, Retiree Health
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 plan design stems from...
