Full Version: Life insurance distribution from a PSP
If a participant has a life insurance policy within their Profit Sharing Plan and dies - and let's say the death benefit is $70K and the cash value at the date of death is $25K - would the difference of $45K be considered the tax free amount? Thanks!
QUOTE (JohnSB @ Apr 14 2006, 01:34 PM) 
If a participant has a life insurance policy within their Profit Sharing Plan and dies - and let's say the death benefit is $70K and the cash value at the date of death is $25K - would the difference of $45K be considered the tax free amount? Thanks!
You are correct.
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