FBAR, OVDI, OPT-OUT, AMNESTY, 412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS,401K,IRS RED FLAG, 401KPENALTY
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
What is a 412(i) plan?
ReplyDeleteA 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