IRS comes down hard on abusive 412(i) and 419 plans
Posted by Joe Larkin on September 25, 2009
Fully insured defined benefit plans and employer sponsored welfare benefit plans have been around for a long time and are perfectly legitimate and powerful planning tools in the right situation.
As is often the case, certain promoters take such tools and come up with ways of operating a plan that goes to far and the results are bad for the clients that trusted them. A word of caution, if a concept relies on an opinion letter &/or involves a way to make large life insurance commissions, be very careful.
View the WSJ article