Lance Wallach Shared publicly - Jun 2, 2014 #Retirement What is a 412(i)…

Lance Wallach originally shared:

Lance Wallach
Shared publicly  -  Jun 2, 2014
 #Retirement



What is a 412(i) plan?
A 412(i) plan is a defined benefit pension plan used by small business owners. It can only be funded by insurance companies through fully guaranteed annuities or a combination of annuities and life insurance. These plans are tax qualified, meaning that any amount the owner contributes to the plan is immediately available as a tax deduction. When reviewed by an experienced 412(i) plan attorney, these plans can benefit small business owners who need to invest in their company while also saving for retirement.

Consumers lose benefits because of insurance company scams
Scams involving 412(i) plans have been prevalent since insurance companies first began marketing the plans. Pension plan promoters misled consumers by inaccurately marketing the plans as legitimate tax-deductible retirement plans with the following benefits:

Tax deferred earnings
Larger contributions than traditional plans
Availability of short-term tax-free loans against the policy
Only a five year commitment to the plan
By manipulating the plans so that consumers could make large contributions, promoters and insurance agents shared in extremely high commissions. In addition, promoters failed to comply with non-discrimination laws by promoting the plans only to the highest compensated employees. Despite regulations, insurers ensured that the plans were funded entirely by certain types of life insurance policies. This allowed them to defraud the IRS of income tax, because the type of insurance policy allowed removal of a large portion of the funds in the plan on a pre-tax basis. In response to these scams, the IRS made 412(i) transaction reportable transactions, requiring consumers who had a 412(i) plan to report this fact to the IRS.

Helping victims of pension fraud recover for their losses
An experienced 412(i) plan fraud protection lawyer at Charapp & Weiss, LLP can help consumers who have been victimized by the fraudulent business practices of promoter and agents marketing 412(i) pension plans. By utilizing our extensive experience in litigation and knowledge of relevant tax and retirement benefits laws, our 412(i) plan lawyers help consumers fight IRS penalties, and seek compensation for defective 412(i) plans, including unpaid benefits owed under the plan.
Lance Wallach originally shared:

412i plan problems or 412i problem go on the net for lance wallach or 412i problem lance wallach will help