Can Second to Die Insurance be Used Inside a Qualified Pension Plan?
Many authorities seem to believe it should not. In a 1997 bulletin reporting on the American Society of Pension Actuaries … Read more
Life Insurance in Qualified Plans
Can Insurance Coverage be Conditioned on the Taking of a Medical Examination?
Yes. Insurance coverage can be conditioned on taking a medical exam if this does not result in discrimination in favor … Read more
Can a Qualified Plan Trustee Borrow Against the Cash Value of Life Insurance Policies?
Yes, but borrowing by the plan creates unrelated business taxable income from any reinvestment of the loan proceeds. For example, … Read more
Can Universal Life Insurance be Used to Provide Death Benefit Under a Qualified Plan?
Universal life and similar products may be used. However, even though universal life has an investment element like that in … Read more
Can Life Insurance be Used in a Section 403b Tax Deferred Annuity Plan?
Life insurance can be provided as an incidental benefit under a tax deferred annuity plan. It is provided on much … Read more
Removal From a Qualified Plan
There are several reasons that a planner may consider removing life insurance from a qualified retirement plan. Understanding the possible … Read more
Transferring Existing Policies Into a Qualified Plan
Life insurance owned by a business or plan participant can (with care) be transferred by contribution or sale into a … Read more
Tax Implications of Life Insurance in Qualified Plans
Employer contributions to a qualified plan, including amounts used to purchase life insurance, are generally deductible. The amount of life … Read more
How to Use Life Insurance in Qualified Plans
Example. Your client is the sole shareholder and president of a cash-rich, highly profitable closely held corporation that employs ten … Read more
Disadvantages of Life Insurance in Qualified Plans
Life insurance can often be purchased under favorable terms and conditions through a qualified pension or profit-sharing plan. The insurance … Read more