google bot detected Employers Legal Obligation To Fund | Insurance Glossary |

Employers Legal Obligation To Fund

Definition of "Employers legal obligation to fund"

Jennifer King
  Lake Realty

Pension plan format. After deciding how much to contribute, the employer can suspend, reduce, or discontinue contributions during the first 10 years only for reasons of business necessity; otherwise the employer will face a substantial IRS tax penalty. If a plan is terminated or if contributions to the plan are discontinued, the employer is only liable for benefit payments for which contributions were previously made.

Related Real Estate Glossary terms

Related Real Estate FAQ