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Plan Sponsor as Beneficiary


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Guest Andy

We have come across a situation where a participant/shareholder has named his company as beneficiary of his MP/PS benefits. There is no QJ&S issue and my question is does anyone feel this prohibited by Erisa.

Any thoughts would be appreciated.

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Guest Noel C Ice

I assume that the company is a corporation. I know of no prohibition against naming someone who is not an individual as beneficiary. Of course, the corporation would not be a "designated beneficiary" under the MRD rules.

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Noel C. Ice

www.trustsandestates.net

teleice@Dtrustsandestates.net

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Guest Noel C Ice

I assume that the company is a corporation. I know of no prohibition against naming someone who is not an individual as beneficiary. Of course, the corporation would not be a "designated beneficiary" under the MRD rules.

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Noel C. Ice

www.trustsandestates.net

teleice@Dtrustsandestates.net

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I'd like to ask that client who named his Corporation as beneficiary of his qualified plan one question:

WHY?

If one knew what the client is trying to accomplish, one might be able to suggest alternatives. Just off the top of my head, this route strikes me as being VERY short on both flexibility and leverage. Of course, I might be missing something obvious. (I often do).

Query: Can a Corporation take an Income Tax deduction for the estate tax paid on that IRD?

John L. Olsen, CLU, ChFC

Olsen Financial Group

St. Louis, MO

John L. Olsen, CLU, ChFC

Olsen Financial Group

St. Louis, MO

314-909-8818

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