im a 39 year old self employed individual. My company has no other employees. Although i make a lot of money currently, i may only keep the company for 3-5 years and then either join a group. Sadly i allowed an individual whom i thought i trusted to creat a defined benefits prg for me. He created a 412i made up of whole life and annuities with contributions of about 80k per year. I believe he did this bc of the tremendous commission he received but that's another matter. Ive learned that 412i is more appropriate for someone much older, closer to retirement, and someone who wants to put closer to 200k in bc of the large fees. once i started seeing the fees and other issues i questioned him about this plan and his response is look at that great deduction you are getting and the guaranteed returns. Im especially very worried about the whole life part of the plan bc it has zero cash value for 2 years and doesnt catch up to premiums for at least 12-14 years (much longer than ill likely keep the company). ive spoken to other insurance folks but unfortunately 412i is so uncommon nobody seems to really know what to do. I also have a 401k/PS that i deposit about 33k in per year.
Can anyone give me advice on how to unwind a 412i with whole life making up 49% and 51% annuity?
Is the cost of buying out the whole life, the net interpolated terminal reserve, the PERC value, or some other figure?
Are there any IRS or other issues i need to worry about?
Thank you for your time,
Can anyone give me advice on how to unwind a 412i with whole life making up 49% and 51% annuity?
Is the cost of buying out the whole life, the net interpolated terminal reserve, the PERC value, or some other figure?
Are there any IRS or other issues i need to worry about?
Thank you for your time,