Incidental Death Benefit

[Guest Roman]

Can I use Revenue Ruling 74-307 (the 1/2 of the ILP premium rule) in a traditional DB plan, i.e., a non-412(i) plan and still meet the incidentally rule?

If the answer is yes and the participant dies prior to retirement, can the death benefit be equal to the face amount of the policy PLUS the PVAB, (assuming of course that the plan document so states) without regard to the maximum 415 lump sum?

I think Mike Preston has already answered this question before but I want to be sure. Thanks.

[Blinky the 3-eyed Fish]

Here is the discussion on the subject you may remember. Your answers are there, so no need for me to say anything.

http://benefitslink.com/boards/index.php?s...ncidental&st=15

[AndyH]

I'm a very slow reader and cautious about wasting time. Anybody willing to answer Roman's question (I'm interested in the question in the second paragraph) in the Cliff Notes version?

[Blinky the 3-eyed Fish]

Okay lazy non-time waster, the answer is that you can pay out both. The retirement benefit is subject to 415, but the death benefit is only subject to incidental benefit rules. Upon satisfying that it too can be paid out in addition to the retirement benefit.

[AndyH]

Thanks, Blinky,

BTW, FYIFV.

[WDIK]

cautious about wasting time

Hence all the time spent perusing and posting on these boards...

[Guest Roman]

So the addition of the PVAB to the face amount does not go against the incidentality of the death benefit even if the face amount is already in the threshold?