Trust Requirement Applies. The benefits must be funded through a trust administered by trustees who are fiduciaries under ERISA. However, if the benefits are actually funded in a trust and the plan is not a tax qualified plan (which it most likely would not be), the employees will be taxed on the contributions to the trust as the employees vest in these amounts.9 If the Bank cannot pay the benefits when due because the plan was not funded as required by ERISA, personal liability of the Bank’s officers who failed to follow ERISA could arise.
Appears in 5 contracts
Samples: Nevada Security (Bank Holdings), Nevada Security (Bank Holdings), Nevada Security (Bank Holdings)
