Bob Everett is covered under a funded nonqualified deferred…

Bob Everett is covered under a funded nonqualified deferred compensation plan that has an irrevocable trust set up for his benefit. Bob must pay income tax as soon as he is vested in contributions made to the fund, even though he does not have a right to withdraw cash from the fund until he retires.

Michelle Fenner is the qualified plan trustee for the define…

Michelle Fenner is the qualified plan trustee for the defined benefit plan held by Flatt Tire Company. Flatt Tire uses life insurance as part of its qualified defined contribution plan. Currently, the cash value of the life insurance policies in the plan amounts to $50,000. Ms. Fenner can borrow against the cash value of the life insurance policies held in the plan.

Tony Johnson, an over-the-road trucker, had several out-of-t…

Tony Johnson, an over-the-road trucker, had several out-of-town trips early in the year, so he got an extension for filing his income tax return. Tony can make the maximum IRA contribution this year. He has until the last date of his income tax filing extension to make a tax-deductible contribution to his IRA.