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419A(f)(6) Plans

 419A(f)(6) Plans allow employees to participate in multiple (ten or more) employer plans that provide life insurance and severance benefits for qualified employees.

This plan allows employees to provide permanent life insurance plans and severance benefits and write off the premium cost. 

In addition, employees with multiple corporate or business entities may enroll the plan in the entity that is most favorable to their interest.  The plan is easy and inexpensive to administer, and allows the participant to exit the program without difficulty or expense. 

Company owners who wish to provide life insurance for themselves and a minimum number of employees and write off the premium are prospects. 

Plan Advantages 

• Substantial deductions available
• Contributions not included in taxable income of participant until received
• Tax deductible life insurance premiums
• Flexible funding options
• Contributions invested in tax deferred products
• No early withdrawal penalties
• Minimum employee costs
• Creditor proof asset structure available
• Estate tax free death benefits with proper planning
• Low plan administration costs
• Controlling shareholders eligible
• Permits employer withdrawal and asset distribution with notice

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