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Distributions from qualified plans present a formidable array of tax and
ERISA traps for unwary plan sponsors. Furthermore, the tax rules
relating to distributions to plan participants are extremely technical
and complicated.
The firm assists its
corporate plan sponsors in complying with the withholding, spousal
consent, and reporting and disclosure obligations relating to plan
distributions. We have developed the systems and form that will
ensure compliance and withstand scrutiny upon audit. For our
executive clients who will be the recipients of substantial plan
distributions, the firm develops tailor-made distribution strategies
that meet the client's cash flow needs, comply with government
regulations, and minimize income, estate and excise taxes.
For clients whose retirement
plan assets constitute a significant portion of their estates, the firm
operates in conjunction with the client's estate planning lawyer to
ensure that distribution planning dovetails with the client's estate
planning, e.g., ensuring that the plan distribution qualifies for the
estate tax marital deduction, and determining the propriety of using
pension assets to fund a credit shelter trust.
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