No Name

It would be a prohibited transaction if the were no class exemption, but there is. The participants buy the policy for the amount of the cash surrender value. Its not a distribution since equal amounts are going in and coming out.

If the document allows fees to be paid from plan assets, I don't see a problem. I agree with you that, once the fees are paid and the balance reallocated, there were no "excess assets".

Gary, I can't quote from Derrin's book without his permission. But in section 1.10 of his book "Who's the Employer", he says incorporation and contributing the property to the corporation solves the problem. In fact, I have a client with five properties that has gone this route.

Can't accept a nomination. I stole the name from a Radio Alice DJ. KLLC-FM San Francisco.

While preparing to send 2003 info to me, client discovers 2002 5500 in his file. Do you: Advise him to send now with an excuse. Advise to go the DFVC program route. Advise not to file. When (if) the client gets contacted, tell him to say "Here's a copy of the return I filed". Thanks