IRS Clarifies Legality of 419(e) Plans

By Lance Wallach, CLU, ChFC, CIMC, and Ron Snyder, JD, EA

Following the U.S. Congress’ lead, on April 10 the IRS issued final regulations under Section 409A of the Internal Revenue Code. If the rules seemed unclear before, they are crystal clear now: Most of the so-called “419(e)” plans as well as the remaining 419A(f)(6) plans are in violation of the law and subject to hefty penalties.

419 Plan

IRS Attacks Benefit Plan

IRS Increases Audits of Section 79, 419, 412i and Captive Insurance

IRS Increases Audits of Section 79, 419, 412i and Captive Insurance