jkdoll2 Posted October 14, 2020 Posted October 14, 2020 Are you able to freeze a 412(e)(3) Plan that is fully funded with life insurance and annuities? If so - what about the premiums that are required?
david rigby Posted October 15, 2020 Posted October 15, 2020 What do the contracts say? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
StephenD Posted October 15, 2020 Posted October 15, 2020 Hiya Folks! The simple answer is yes. However, it ceases to be a 412(e)(3) plan at that very moment; it becomes a regular old DB Plan, with all of the minimum funding rules, Fiduciary rules, tax rules, compliance rules, etc. You would probably need a new Plan Document at that moment, too. As an aside, I rarely find one of these plans that is compliant, and this is a good chance to bring it into compliance, assuming the client will pay for what a DB Plan costs when someone is actually doing the work. Effen, DMcGovern and Luke Bailey 2 1
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