Section 412(i) Plans: Emerging Abuses Involving Depressed Cash Value Insurance
Journal of Pension Benefits, Vol. 10, No. 2, 2003
14 Pages Posted: 27 May 2011
Date Written: January 1, 2003
Abstract
In a clarion call for the exercise of common sense, this article provides background about a laudable concept--the fully-insured defined benefit plan-that some "marketeers" have found a way to pervert for the sake of increased production numbers. Special attention is given to the legally-questionable practice of using speciously-designed insurance products, the problems with planned over-contributions in comparison to benefits, and the advisor’s potential liability under laws governing breach of fiduciary duty.
Keywords: defined benefit plan fully insured insurance annuity 412(e) 412(i) pension plan 412 springing cash value insurance breach fiduciary duty ERISA Internal Revenue Code
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