The Section 79 Plan Catch

Section 79 Catch

The Pitch

The basic pitch behind section 79 plans is the opportunity to buy cash value life insurance using pre-tax dollars. The returns on cash value life insurance tend to be low, but if you could buy them with pre-tax dollars and borrow money from them tax-free but not interest free, the after-tax returns start to look a lot more attractive. The insurance agents sells it like this:

How would you like a retirement plan where you get:

1) An upfront tax deduction

2) Tax-protected growth,

3) Tax-free income in retirement, and

4) Don’t have to pay for an employee match into the plan?

Read More Now