401kSecure®

When individuals become disabled, contributions to their 401k, 403b and profit sharing plans stop. As a result, they can experience catastrophic losses in their retirement assets at age 65 – the very time when payments to them from their disability insurance plans usually terminate. For example:

There are two disability insurance solutions to this serious threat to individuals’ retirement security:

• 401kSecure - the qualified plan solution: This patented program enables participants in 401k plans to buy disability insurance with their pre-tax contributions in amounts equal to those contributions. When they become disabled, the insurance company will pay their benefits directly into their 401k accounts on a tax deferred basis. As a result, their retirement assets will grow just as if they were working. 401kSecure was adapted by one of the largest corporations in the country but proposed Treasury regulations, if adapted, would affect the tax treatment of the program. As a result, CCP has suspended sales of the program until the proposed regulations have been finalized.
  
  
• The 401k Disability Plan - the non qualified plan solution: This program enables individuals to purchase disability insurance, as with 401kSecure - equal to their retirement plan contributions. There are two plan options:

  1. The insurance is payable directly to the disabled individuals to be invested as they see fit.
  2. The insurance is payable to a trust to be invested at the direction of the disabled employees.

  The disability insurance is purchased with after-tax dollars; the insurance benefits are tax free and the result - as with 401kSecure - is that disabled individuals’ retirement assets will grow just as if they were working. Click here for more information.