Agents from Hartford and other insurance companies were shown ways to sell large life insurance policies. This “Welfare Benefit Trust 419 plan or 412i plan should be shown to their profitable small business owners as a cure for paying too much taxes.
A Welfare Benefit Trust 419 plan essentially works like this:
• The business provides a fringe benefit for their employees, such as health insurance and life insurance.
• The benefit is established in the name of a trust and funded with a cash value life insurance policy
• Here is the gravy: the entire amount deposited into the trust (insurance policy) is tax deductible to the company,and
• The owners of the company can withdraw the cash value from the policy in later years tax-free.
• The business provides a fringe benefit for their employees, such as health insurance and life insurance.
• The benefit is established in the name of a trust and funded with a cash value life insurance policy
• Here is the gravy: the entire amount deposited into the trust (insurance policy) is tax deductible to the company,and
• The owners of the company can withdraw the cash value from the policy in later years tax-free.
Read more by clicking the link above!
CC:
ReplyDeleteBCC:
Sent Date: 2004-12-08 02:16:22:000
Received Date: 2004-12-08 02:16:22:000
Subject: Re: 419 and Sales c.fagl‘
Attachments: • Doc Link.htm
Please stay very close to Jeff on this (I'd do daily updates).
Michael Kalen
EVP, Individual Life
Hartford Life
860-843-6644
860-402-3655 (Cell)
860-843-6833 (Fax)
John Vaccaro
John Vaccaro
12/07/2004 04:40 PM
To: Michael Kalen/HIG Simsbury@HARTFORD_LIFE
Subject: Re: 419 and Sales Goals
cc:
I don't believe timing is valid-none of theindust associations picked up on this. I also feel that we are ahead
of our competitors in understanding an reacting. I to have been receiving several phone calls about this and
understand the concerns. Your decision might be to issue 419A(f)(6) for the rest of this year, report on our
corporate returns, and just not issue anything new next year. The other answer could be allow the client
establish a 419(e) plan. We are at the mercy of our attorneys at this point. Dan M. said he could lose 5-10mil in
premium if we don't make a decision by Friday. Charlie is also concerned. I would love suggestions on how to
, u everyone is on e phone, holding conference calls etc. The other issue that I am
concerned about is how material advisor now effects the b/ds? If we issue, we could be potentially hurting our
relationships with our partners.
-- • V • - .. -
Please advise-I'll swing by before I leave tonight to discuss if you have time_
John A. Vaccaro
Chief Marketing Officer-Individual Life
Hartford Life