Guest pjg Posted January 18, 2003 Share Posted January 18, 2003 We are being told by several different Ins Cos that they no longer providE the PS-58 costs for the 1099-R reporting. There was a new table issued for this purpose in Notice 2002-8. Which types of ins policies should ps-58 costs be calcualted for????? We are getting conflicting info. Does anyone out there know for sure???? Thanks!!! Link to comment Share on other sites More sharing options...
jaemmons Posted January 20, 2003 Share Posted January 20, 2003 Any policy which hold an underlying cash value (e.g.-whole & universal life) Term policies don't, generally, carry a cash value so they wouldn't subject the participant to PS -58 costs. Link to comment Share on other sites More sharing options...
Earl Posted January 21, 2003 Share Posted January 21, 2003 check Code Sec. 72(m)(3)(B) I think it says any policy with a death benefit in excess of the cash value (which includes term). My understanding of their not providing the cost is that they can't handle doing the math [(death benefit - cash value) x cost/thousand], so they push it off on the TPA/CPA or whoever will stand up and do it. CBW Link to comment Share on other sites More sharing options...
MGB Posted January 21, 2003 Share Posted January 21, 2003 We have also run into insurance companies refusing to provide this information (although they did in the past). I don't understand this. The calculation of the cost makes a comparison of the insurance company rates and the table from PS 58. If they don't provide their rates, how do you know if you are calculating the correct amount? Link to comment Share on other sites More sharing options...
mbozek Posted January 21, 2003 Share Posted January 21, 2003 The revision of the PS 58 tables by the IRS was intended to prevent Ins co from making up special rates for LI policies to circumvent the PS 58 rates. The IRS position is that the new ps 58 rates are a reasonable charges for LI coverage and that an Ins co that uses lower published rates must demonstrate that such rates are available to all standard risks for individual initial issue 1 year term policies, not just owners of employer based polices. See Notice 2002-08 , III 3. As a result many ins co are refusing to publish their rates. mjb Link to comment Share on other sites More sharing options...
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