Charlie Trout, age 45, and his employer enter into a 403(b) plan that will provide him with a $500 a month annuity upon retirement at age 65. The agreement also provides that if he should die before retirement, his beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Charlie's employer has included $28 for the cost of the life insurance protection in his current year's income. When figuring his includible compensation for this year, Charlie will subtract $28.

• What are the issues that need to be considered in the fact-finding phase of the client?

• What more information would be needed (i.e. a census)?

• What are the advantages and disadvantages of choosing the plan or TOPIC for this Client Scenario?

• Why did you not choose another solution for your Client Scenario?