Conversion of a 412(i) Plan

[ac]

We have a prospect that wants to consider getting out of his current 412(i) arrangement. Has anyone "converted" a 412(i) Plan to a plan funded through a trust?

[Guest Carol the Writer]

The only comment that I would make is that you don't forget to preserve the PVAB, which is the cash value of the life insurance and annuity contracts as of the date of conversion. As far as plan sufficiency goes, you really don't gain anything for the plan sponsor. And now "wear-away" is no longer permitted under the PPA

'06. So, your future design needs to take these matters into account.