Advanced Underwriting Consultants

Article Hits 412(i) Problems

Section 412 (e)(3) of the Internal Revenue Code (formerly Section 412(i)) permits employers to implement pension arrangements funded solely with guaranteed life and annuity products.

Those plans have been under intense scrutiny by the IRS lately.  A recent article in the Wall Street Journal describes certain situations where small business owners are on the hook for huge potential reporting and tax liabilities.

The article is unusual in that it names some of the life companies that have supported such plans, and which have been sued as a result of their advocacy.

Larry Owens