Life Insurance in Qualified Defined Contribution Plans


At first blush, offering life insurance in a qualified defined contribution plan sounds like a cost efficient way to provide your employees with life insurance protection. While that may be true, there are certain considerations that need to be taken into account before you decide whether to offer life insurance as an investment option under a qualified plan.

In this article we will explore what a plan sponsor should consider from a practical perspective before offering life insurance as an investment option under a qualified defined contribution plan. Specifically, Part I will address the federal income tax qualification issues associated with offering life insurance under a qualified plan, and Part II will address special considerations associated with plans that are covered by the Employee Retirement Income Security Act of 1974

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Elizabeth LaCombe | Attorney Advertising

Written by:


Elizabeth LaCombe on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.