litigation representation for consumers who were harmed by defective 419 welfare benefit plans and the fraud and misrepresentation of plan promoters and insurance agents. With offices in Washington D.C., Maryland, Virginia, and Florida, the firm represents consumers located throughout the U.S.
What is a 419(e) welfare benefit plan? A 419(e) plan is a type of employee welfare benefit fund, sponsored by an employer, used for the purpose of providing financial stability for employees in retirement. These plans offer many different benefits to employees, including life, health, disability, long-term care, and post-retirement medical benefits. In a 419(e) plan, there is no benefit pooling among different companies. Instead, the same company pays for all the plan benefits based on a target contribution or target benefit structure. Plan assets are generally held by an independent trustee, and are exempt from seizure by creditors of the company.
How insurance companies scam consumers Despite the creation of regulations listing potentially abusive tax shelters (listed transactions) by the IRS, promoters continue to market plans to mislead consumers into believing the plan premiums are tax-deductible. While this benefits the promoters and agents in their sales and commissions, it has serious financial consequences for consumers, including tax penalties and the loss of benefits because of defunct plans. Typical fraudulent claims of promoters include the following:
Misrepresenting premiums as tax deductible Fraudulently claiming plans are exempt from tax deduction limits Failing to analyze whether insurance policies promoted are funds as defined by the IRC Incorrectly claiming exemptions from compliance with ERISA or sections 409, 414, 419, 505, and 79 of the IRC Improper tax deductions Failure to cite the section of the IRC under which contributions to their plan are tax-deductible Failed to comply with non-discrimination laws Taking larger deductions than required to pay term insurance costs for the current tax year Skilled 419 plan lawyers helping consumers When a 419 insurance plan is defunct, consumers who have paid high premiums for years are left without the promised benefits, including much needed life, health, disability, long-term care, and post-retirement medical benefits. In addition, fraud or misrepresentation of an insurance company and its plan promoter can result in penalties by the IRS and other serious tax consequences.
litigation representation for consumers who were harmed by defective 419 welfare benefit plans and the fraud and misrepresentation of plan promoters and insurance agents. With offices in Washington D.C., Maryland, Virginia, and Florida, the firm represents consumers located throughout the U.S.
ReplyDeleteWhat is a 419(e) welfare benefit plan?
A 419(e) plan is a type of employee welfare benefit fund, sponsored by an employer, used for the purpose of providing financial stability for employees in retirement. These plans offer many different benefits to employees, including life, health, disability, long-term care, and post-retirement medical benefits. In a 419(e) plan, there is no benefit pooling among different companies. Instead, the same company pays for all the plan benefits based on a target contribution or target benefit structure. Plan assets are generally held by an independent trustee, and are exempt from seizure by creditors of the company.
How insurance companies scam consumers
Despite the creation of regulations listing potentially abusive tax shelters (listed transactions) by the IRS, promoters continue to market plans to mislead consumers into believing the plan premiums are tax-deductible. While this benefits the promoters and agents in their sales and commissions, it has serious financial consequences for consumers, including tax penalties and the loss of benefits because of defunct plans. Typical fraudulent claims of promoters include the following:
Misrepresenting premiums as tax deductible
Fraudulently claiming plans are exempt from tax deduction limits
Failing to analyze whether insurance policies promoted are funds as defined by the IRC
Incorrectly claiming exemptions from compliance with ERISA or sections 409, 414, 419, 505, and 79 of the IRC
Improper tax deductions
Failure to cite the section of the IRC under which contributions to their plan are tax-deductible
Failed to comply with non-discrimination laws
Taking larger deductions than required to pay term insurance costs for the current tax year
Skilled 419 plan lawyers helping consumers
When a 419 insurance plan is defunct, consumers who have paid high premiums for years are left without the promised benefits, including much needed life, health, disability, long-term care, and post-retirement medical benefits. In addition, fraud or misrepresentation of an insurance company and its plan promoter can result in penalties by the IRS and other serious tax consequences.