Section 79 Permanent Plans
While many employers offer Group Term life insurance to their employees, most employers don’t realize is that there are additional benefits available within the IRS Code that provide specific benefits to business owners, executives, and key employees on a voluntary basis. Within Group Term, Section 79 is the IRS code defining the ability for highly compensated individuals to go beyond the basic benefit offerings.
Through a Section 79 Permanent Plan, a tax-advantaged investment designed to build wealth can be designed and implemented. Section 79 Permanent Plan is a permanent life insurance plan offered as company benefit and provids the following advantages:
- An immediate reduction of taxable income (and taxes due).
- Allows tax-advantaged, annual contributions ranging up to $1,000,000+!
- Provides tax-deferred growth during working years.
- Unlike 401k plans, provides penalty-free access to funds before age 59½.
- Accelerated death benefit for chronic or terminal illness.
- Provides a tax-free death benefit for surviving beneficiary(ies).
- Future tax-free income distribution during retirement.
- 100% voluntary self participation
Business Planning Group has over $500 million in policy value currently in force across the United States. We work with: CFO’s, HR teams, CPA’s, benefit providers, and others to establish Section 79 Permanent Plans and other executive benefit plans for key employees. We would like to personally meet with you to discuss how executive benefit planning can assist your company in recruiting, retaining and rewarding your executive and key employees.
Please contact us and let’s get the conversation started!
Ed Rieger, LUTCF
Ed Rieger from Business Planning Group has over 30 years of experience in business management and benefit services.
Mr. Rieger’s expertise includes the implementation of Executive Benefits and Qualified Plan administration. Mr. Rieger is a licensed representative and holds the LUTCF designation from the American College. The LUTCF designation combines essential product knowledge with the skills financial professionals must have to advise individuals and businesses effectively on their insurance and planning needs
Member of National Association of Insurance and Financial Advisors