Page 340 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

326 The Complete Guide to Executive Compensation

Age Distribution Period Age Distribution Period

70 27.4 93 9.6
71 26.5 94 9.1
72 25.6 95 8.6
73 24.7 96 8.1
74 23.8 97 7.6

75 22.9 98 7.1
76 22.0 99 6.7
77 21.2 100 6.3
78 20.3 101 5.9
79 19.5 102 5.5

80 18.7 103 5.2
81 17.9 104 4.9
82 17.1 105 4.5
83 16.3 106 4.2
84 15.5 107 3.9

85 14.8 108 3.7
86 14.1 109 3.4
87 13.4 110 3.1
88 12.7 111 2.9
89 12.0 112 2.6

90 11.4 113 2.4
91 10.8 114 2.1
92 10.2 115 and over 1.9

Table 6-33. Minimum withdrawal requirements

of a primary residence, or significant medical expenses not covered by the health-care pro-
gram. Under such provisions, the normal penalties for withdrawals are suspended or made less
punitive.
401 (k) Plans. This cash or deferred compensation arrangement (CODA) is often called
a 401(k) plan because that is the section in the Internal Revenue Code added in the 1978
Revenue Act where it is defined. Namely, an eligible employee may choose to receive cash
from the employer or have the employer make a comparable contribution to a qualified
retirement plan. When applied to salary, it is a salary reduction plan. There are restrictions
on the amount highly compensated employees may defer and when the deferred amounts,
adjusted for investment results, may be withdrawn, similar to thrift plans. Investment
opportunities often mirror those available with the after-tax savings plan. The 401 (k)
plan is not a separate plan but rather any IRC Section 401 plan that contains a CODA.
Some financial service firms (for a fee) provide advisory services regarding investment
alternatives.