Gary Posted August 8, 2007 Report Share Posted August 8, 2007 Say a client sponsors a VEBA plan and decides that they want to fund some of the benefits with life insurance. For one of the participants they want to purchase a poplicy with a face amount of say $1 million. The participant already has life insurance with a face of $1 million. Could this policy become part of the plan where the plan sponsor pays future premiums and (as prescribed under IRC 419) only the calculated portion of the premium is the deduction, where the calculated portion includes the amount of premium for one year's of life insurance coverage and for pre-funding the other post retirement medical benefits to be provided by the life insurance cash value at retirement? This being considered as an alternative to implementing an additional policy. Thanks. Link to comment Share on other sites More sharing options...
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