Advantages of establishing a 419 Health & Welfare Plan:

• Participating Employees Receive Valuable Life-Time Death Benefit Protection, with Employer Contributions That Are Not Taxable to the Employee (Other Than the Minimal Cost of the Current Economic Benefit)
• Employers Receive Current Tax Deduction for the Entire Cost of the Death Benefit Provided (Buying Life Insurance on a Pre-Tax Basis)
• Employers Create Good Will Among Employees Who Receive This Important Long-Term Benefit and Generate Positive Employee Morale
• It Is Not Necessary To Provide Benefits To All Rank And File Employees.
• Upon Termination of Employment, Participating Employees Have the Guaranteed Right to a Life-Time Death Benefit with No Underwriting Required
• Participating Employees Receive Death Benefits That:
• May Be Excluded from Estate Taxes
• Are Not Subject to Income Taxes
• An Employer May Adopt, Amend or Terminate its Benefit Election at Any Time
• The Life-Time Death Benefit Can Provide a Tax Efficient, Post Retirement Income Stream on an As Needed Basis by Establishing Settlement or Forfeiture Benefit Options
• All Benefits Established in the Plan are 100% Protected from Creditors of the Providing Company or the Employee
• Some plans may also include a post retirement medical benefit if desired

Candidates for 419 Health & Welfare Plans:

• Any Corporate Entity Except a Sole Proprietorship
• C Corporations
• S Corporations
• Partnerships
• Limited Liability Companies
• Family Limited Partnerships, etc.
• Particularly Effective for Small and Closely Held Corporations and Partnerships
• Profitable with Strong Cash Flow
• Need for An Additional Current Tax Deduction ($30,000 to Millions)
• Employers Who Want To Provide Employees with a Valuable Benefit
• Employers Who Need To Fund a Buy-Sell Agreement or Provide Estate Asset Protection on a Pre-Tax Basis
• Employer/Owners Who Want To Provide Maximum Benefits for Their Most Important Employee(s)