Nondiscrimination rules now govern tax-sheltered annuity plans. (Tax Reform Act of 1986) (column)

Healthcare Financial Management | July 1, 1989| | Copyright

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. ...

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