Excess Benefit Transaction

Definition of "Excess benefit transaction"

Ana  Bohabot real estate agent

Written by

Ana Bohabotelite badge icon

Keller Williams Legacy

Transaction by a tax-exempt organization with a person from inside the organization (disqualified person) that provides an economic benefit to that person that is in excess of the value of the consideration received. Compensation that is deemed to be unreasonable comprises an excess benefit and is subject to a penalty excise tax under section 4958 of the internal revenue code.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Money paid through state and federal programs to workers who are temporarily unemployed. The program, which was created by the social security act of 1935, is managed by the individual ...

Pension plan that allows an employee to contribute by electing to have money deducted from each paycheck. Some qualified plans such as 401 (k) allow employees to contribute pre-tax dollars, ...

Condition characterized by illnesses indicative of reduced immune respon ...

Placement of verbal descriptive information into numerical form for the purposes of analysis. ...

Beneficiary's choice, in a life insurance policy or annuity, for receiving income payments for a given period of time. The number of payments are fixed by the payee; the benefit amount is ...

Additions of new entrants into an employee benefit insurance plan. ...

Section providing protection under three coverages: Coverage E (Personal Liability} coverage in the event a suit is brought against the insured because of bodily injury and/or property ...

Applications for insurance coverage that have been forwarded to an insurer but not yet processed. ...

Deliberate act or omission, including trespass, assault and battery, invasion of privacy, libel, and slander. An intentional tort is a branch of civil liability. Liability insurance can be ...

Popular Insurance Questions