House Bill to Also Affect Benefits

October 31, 2003 ( - A jobs bill now pending in the US House of Representatives would also have a variety of impacts on employee benefits.

>Specifically, according to a CCH report, The American Jobs Creation Bill of 2003 (HR 2896) (See  House Committee Approves Jobs Creation Bill ) by House Ways and Committee Chairman Bill Thomas (R-California) would:

  • extend for five years the ability of an employer to transfer excess defined benefit plan assets to retiree health accounts (an option that is currently scheduled to expire after 2005)
  • clarify that a stock option is not subject to payroll tax when the option is exercised
  • create rules to ensure that tax on amounts received under nonqualified deferred compensation arrangements is deferred only when the compensation is truly at risk and the employee does not have access to or control over the amounts
  • allow IRAs to be treated as eligible S Corporation shareholders.