Guest HammerBeth20 Posted September 30, 2014 Posted September 30, 2014 I work in the 409A world. I have a potential client that has a 419 that is still around, and has some life insurance as a part of the plan. Is it even possible to start a 409A plan with that existing life insurance? We typically build the plans from the ground up and have never had a situtation with already existing life insurance. Thanks in advance!!!
ETA Consulting LLC Posted September 30, 2014 Posted September 30, 2014 The 419 plan is, typically, a welfare benefit plan. Unlike retirement plans, there is virtually no certainty that the benefits will ever be received. For instance, in a 401(k) plan, you know you're going to get your benefit at some point in the future; even if given to your beneficiary. That is the nature of a retirement plan. A welfare benefit plan is different, in that you may qualify for a benefit under the items covered; and a mere severance from employment is not one of them. I'm not sure if your case involves an AF(6) or a (e). But, this merely a broad understanding. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Ron Snyder Posted September 30, 2014 Posted September 30, 2014 The simple answer. There are multiple ways of getting out of a welfare benefit plan, but none of them involve a reversion of the assets to the employer, which would be required to get the policy into a NQDC plan. I am curious as to why you would want to?
Guest HammerBeth20 Posted September 30, 2014 Posted September 30, 2014 We are just trying to vet out all potential options. Want to do what is most advantageous to the client. I am working with minimal information currently, my partner has been in contact with the client, so I don't have all pertinent information.
Guest MaryAllen72 Posted October 20, 2014 Posted October 20, 2014 Hello there! I do not know how much help I can be but I do know of a firm that helped a dear friend with a similar issue with her 419 plan among a few other related IRS penalties she faced. They are located in Milwaukee but I discussed options with them in Detroit and my friend is in Florida. Maybe they could be of help or at least provide some guidance for you or your client? Mahany & Ertl was the name of the firm. Sorry I couldn't be of more help.
Guest helpyou Posted November 17, 2014 Posted November 17, 2014 he has have also lost cases, best on this are ron snyder, lance wallach, or robert sherman
Guest helpyou Posted November 17, 2014 Posted November 17, 2014 he has have also lost cases, best on this are ron snyder, lance wallach, or robert sherman
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