AJC

I have read, "a 403(b) plan that provides for employer contributions cannot be a non-ERISA 403(b) plan." Can a church plan, which is an ERISA exempt and non-electing 403(b) plan, provide for employer contributions? If so, how is it that the two statements conflict? Any helpful cites?

Oops! Misstated my earlier response. Should have said, the statement I have shows the Total Death Benefit is greater than Face Value and less than the combined Face Value Plus Current Cash Value.

Mike, Gotcha. I include Fair Market Value in the RMD calculation. I receive a year end report from the life insurance company that shows: Face, Premium and Mode, Dividend, PS-58 Cost, Total Death Benefit, and Current Cash Value. I would assume Fair Market Value and Total Death Benefit are the same thing. It (Total Death Benefit) is greater than Face Value and less than Current Cash Value. I will query the life insurance agent servicing the plan. Thank you.

When calculating the Age 70.5 Required Minimum Distribution on a participant account holding a life insurance policy, regarding the life insurance policy, does the RMD calculation include the value of the death benefit, does it use the cash value for the calculation, or does it include both?