Follow the plan and get audited.

Follow the plan and get audited. 

What is a Section 79 Plan?Protection, Retirement, Innovation. A permanent benefit life insurance plan (using IRS codes) that can add substantial retirement income via sheltered cash accumulation and protection to the business owner(s) as well as the employees at a minimal cost and in a tax-advantaged way.

Why Would A Company (and a Business Owner) Want to Implement a Section 79 Plan*?

1. Additional Permanent Life Insurance Protection
2. No Limits on Funding
3. Tax-Deferred Growth of Funds
4. Employee Benefit with Minimal Costs
5. Tax Deductabilty of Plan
6. Income-Tax Free Survivor Benefit
7. Distances Assets from Company Creditors
8. Program Supported by Specific IRS Tax Code and Regulations

Structure:

FOR THE BUSINESS OWNER AND KEY EMPLOYEES

1. Business Pays Tax Deductible Premium on Corporate
   Sponsored Group Life Insurance Policy (permanent
   life) on behalf of the business owner or key employee
2. Life Insurance Company Issues Insurance Policy
   Insuring Key Employee's Life
3. Premium is only Partially Taxable to Owner-Employee
   or Key Employee
4. 1. Employee Owns Policy and All Rights Associated with the Policy
   2. Income Tax-Free Death Benefit is Paid to Key
      Employee's Beneficiary
5. Cash Value can be used to Provide Tax-Free
   Retirement Income^♣

FOR EMPLOYEES

1. Business Implements Group Life Insurance Plan. Employee Chooses Type and Benefit Amount.
2. Typically, most employees select only $50,000 of Group Term Insurance Coverage Under the Plan (minimal cost).
3. Company Pays Tax Deductible Premium for Employee(s) Selected Life Insurance Policy
4. Employee Recognizes an "Economic Benefit" as Taxable Income (on policys > $50,000 Death Benefit) and Owns the Insurance Policy
5. Death Benefit's Paid Income-Tax Free to Employee's Named Beneficiaries
6. If the Employee Selects a Permanent Life Insurance Policy, the Employee Can Withdraw Excess Cash Value Income-Tax Free (Policy Loan) for Retirement Income.