CCP’s tax advantaged 401(k) enhancement - which is structured on the basis of recent IRS Private Letter Rulings - allows participants in 401(k) and profit sharing programs to purchase disability insurance in an amount equal to their program contributions. The premium can be paid from their pre-tax contributions without imputed income and, when they become disabled, the disability benefit is payable directly into their 401(k) and profit sharing accounts without any current tax liability.

Then, if they become disabled, $40,000 a year will be payable directly into their 401(k) programs and their assets will continue to grow just as if they were working.” She added, “As a result of this new 401(k) plan feature, sole proprietors can eliminate one of the largest threats to their financial security the fact that contributions to their retirement programs will stop when they become disabled.” Steven Zeiger, CCP’s Vice President of Marketing said, “A significant advantage of our new 401(k) feature is that it will be administered by CNA Trust.