72t

Ciofoletti V. Securian Fin. Grp., No. 0:18-cv-03025-JNE-ECW (D. Minn.) – filed in federal court in St. Paul, Minnesota

Doc. 151-21 - Ed Storer Deposition
- (p26) - And we had this case, as I explained earlier, where we needed to do it prior to age 59 1/2 through a 72t, which is a code in the tax law, and we asked their recommendation. And this was the recommendation that was given to me from Shurwest and Mel.

Speaking from my IMSA experience, there's a lot of emphasis on internal replacements, replacement activity, trying to meet those definitions, and track that activity, but beyond that, not much is captured in the applications.
But at some companies that I've talked to, there's a real concern about funds coming from a lump sum paid out of a 401(k) plan.
The concern is that these are qualified monies, and that somehow a broker/dealer/sales agent rolls them into a non-qualified variable annuity.
That would really be ripe for some kind of abuse because you're probably not helping out that customer. So you have to go through a litany of questions with the customer, like:
- "Is this the right time to buy this annuity?
- Are you fully funding your 401(k)?
- Are you in your deferred comp plan at work?"
We need to determine the right choice and order of priority for some of those kinds of issues. Regulators make a comparison with the existing insurance program to determine if a company is really looking at the customer's profile.

1998 - SOA - Market Conduct: A New Actuarial Frontier, Society of Actuaries - 20p