What Are §412(i) Plans, Anyway?

As noted, as of January 1, 2008, §412(i) has been replaced by §412(e)(3), although it is likely that fully-insured defined benefit pension plans will continue to be referred to by the former subsection for some time to come.

I have heard that §412(i) pension plans are no longer viable. Is this true?

In a word, no.

There has been confusion on this issue in two regards. The first is a mere technical issue, and is not substantive.  Prior to January 1, 2008, so-called fully-insured pension plans were authorized and defined

UFG is celebrating 20 years with a whole new look.

New logo, website and even a blog.

We have just launched our new Website and added a blog “From the Field”. Hope you enjoy all the new features, news and information. So join in, we want to hear what you have to say. Thanks for visiting and stay tuned to see what else is new.

A Fresh Look at Collective Bargaining: A Winning Situation for All

Then and Now

In the early part of the 20th Century, American workers were largely employed in heavy industry where working conditions were often unfair, unhealthy, and unsafe. As a result, unions and the collective bargaining process evolved as a means of addressing employee rights and protecting their interests.

When is it Ok to Create a Separate Entity From an Existing Entity?

For example:

Dr. Jones works for a practice with 7 other partners. He has some ownership. He also has income from consulting work he does outside of the practice…enough income that he’d like to establish a retirement plan and/or SEWP. Is he able to do so?  

Why Can’t My Company Tax-Deduct The Death Benefit Cost in SEWP?

Good question.

In October, 2007, the IRS published Notices 2007-83 and 84, together with the Treasury Department’s Revenue Ruling 2007-65.  Notice 2007-83 challenged a variety of so-called welfare benefit plans marketed as single-employer plans, that in one way or another attempted to justify employer deductions for premiums paid on cash value life insurance in plans providing pre-retirement death benefits (i.e., DBO plans).

Can a SEWP include benefits in addition to Post-retirement Life and Medical?

The answer to this question is a bit more complex than it seems the question would imply.  SEWP is the trade name under which UFG markets its single employer welfare benefits plan, and specifically provides for the funding of post-retirement life and medical benefits as authorized under IRC §419A(c)(2).  So it would appear simple and straightforward.

But it isn’t.