419A(f)(6) Plans

[Guest genfre]

Can someone give a simple example of the advantages of funding employee (current, not terminated employee) life insurance through a 419A(f)(6) plan than through any other method?

[Greg Judd]

Hi,

And thank you for the opportunity to justify my existence as moderator of the Welfare Plans in General message board! Things have been much too quiet here lately.

Fortunately for both of us, Dave had already excerpted what looks like a great National Underwriter article on just this topic.I simply entered the Code section you referenced in your post in Benefits Link's search tool, clicked "Search", & there it was. I've included the URL to the whole article below:

www.nuco.com/nu_online/archives/lh_weeklies/1997/L1-6/0001NEBA.html

Please let us know if it helps - I could use the message count....

[Greg Judd]

wow! Here's one hot off the press on this topic-& it's an exclusive to the redoubtable Benefits Link:

www.benefitslink.com/articles/419.shtml

[Ron Snyder]

This site has been quiet recently, what with IRS designating 419A(f)(6) plans as "potentially abusive tax shelters" and attacking on other fronts. However, now it appears that the House of Representatives has removed 419A(f)(6) reform from the African Trade and Opportunity Act, HR 434. Of course the Conference Committee could put it back in, but it appears that cash value life insurance inside 10-or-more employer plans may be safe for now.