The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Pension Plan Choices Date:  2/23/2001  7:26 PM
Author:  pmcw007 Number:  28075 of 78166

Thanks for the response libc. Evidently, I did a incomplete job in phrasing one question. I asked:

<<Isn't it true that many life insurance wrapped programs can be set up to be either defined contribution or defined benefit?>>

You responded: "[When all qualified retirement plans were exempt from the Federal Estate Tax it made a lot of sense when allowed to purchase life insurance within the retirement plan. When the Federal Estate Tax exemption was taken away in 1984, it did not make sense in my view. The face amount of life insurance on a participant within a defined benefit plan cannot exceed 100 times the monthly defined pension benefit. The life insurance premium within a defined contribution pension plan cannot exceed the aggregate contribution by more than 49 percent.]:

My reference was to such situations purchased outside a pension or retir