Beware of IRS penalties.

• Author: Brucker, Alex M.

Your clients may be facing severe financial hardship if, since 2004, they invested in any of the following types of plans:

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* Welfare Benefit Plans (Section 419 Plans) funded with accumulating cash value life insurance policies.

* Defined Benefit Pension Plans that invest in accumulating cash value life insurance policies with face amounts exceeding the Plan's "incidental death benefit limitation" by $ 100,000.

* ROTH-IRA transactions where the client's business income shifted to a Roth-IRA to avoid income tax. These investments are considered...