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How can an employer contribute to an employee's ABLE account…

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How can an employer contribute...
How can an employer contribute to an employee's ABLE account or Special Needs Trust without it reflecting as earned income to the employee?
Submitted: 2 months ago.Category: Finance
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Answered in 34 minutes by:
5/30/2018
Financial Professional: Lane, JD, CFP, MBA, CRPS replied 2 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,881
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. …. My name’s Lane,

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a couple of minutes while I type up my response.

….

Then if you have further questions we can go from there.

(If the site makes one of those automated phone call offers, that DID NOT COME FROM ME. It’s an automatic offer that the site throws up there, I’d be glad to discuss this over the phone but the site charges more for that. Only accept if you’d like a call.)

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Financial Professional: Lane, JD, CFP, MBA, CRPS replied 2 months ago

I'm sorry but this can NOT (and should not) be done.

...

Even if the individual is no longer an employee, IRS will deem this done not as a gratuitous gift, but rather because of the past employment relationship.

...

The seminal case on this is Duberstein (Supreme court) ... Commissioner v. Duberstein, 363 U.S. 278 (1960)

...

not about special needs trusts BUT the same issue, employers (and even past employers) are view by the law as paying compensation for services rendered (even if labeled a gift or other contribution) because of the employment relationship that existed.

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Financial Professional: Lane, JD, CFP, MBA, CRPS replied 2 months ago

Please let me know if you have any questions at all, before rating me.

If not, your positive rating … (by using those the stars on your screen, and then clicking “submit”) would be appreciated.

Otherwise, I receive no compensation for the work here.

...

I hope you'll rate me based on accuracy and thoroughness, rather than any good news/bad news content

...

Thank you!

Lane

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