Excess Benefits

About Excess Benefits .

Excess Benefits of Section 72(m)(5) are payments for a qualified pension plan, profit- sharing plan, or stock bonus plan or a qualified annuity plan to a 5% owner, former 5% owner, or successor of a 5% owner that exceed the benefits provided for that individual under the plan formula. A 10% tax, in addition to any income tax, is assessed against an individual who receives Section 72(m)(5) excess benefits.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.