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This section is for informational purposes only. Please consult your Attorney and/or tax advisor to determine whether a 412i plan is right for your personal situation.
Section 412i Plan
Maximize Your Tax Deductions
Are you a small business owner or professional with few or no employees?
Do you want to accumulate significant retirement assets on a fully guaranteed basis? Do you want to put away more each year than the 25% of payroll/$42,000 per individual limit permitted by most qualified retirement plans?
Is yours an established business where there is need/desire to maximize contributions and tax deductions each year until retirement to a greater extent than is possible in any other qualified retirement plan?
There is a plan, approved by the IRS, that will allow you to meet these objectives: a Defined Benefit 412(i) Plan.
Defined benefit plans are the only qualified pension plans that allow the significant accumulation of retirement assets in a short period of time. This special type of defined benefit plan, 412(i), generates the maximum deduction allowed by any plan type on a fully guaranteed basis.
Guarantees are derived from insurance and/or annuity contracts and are dependent upon the claims-paying ability of the issuing company.
Here's how it works:
Step 1: Plan is custom designed to meet employer benefit/contribution level goals.
Step 2: Plan documents are drafted for and executed by the employer.
Step 3: Employer makes annual contributions into special insurance company contracts, as required by law, to fully guarantee the funding of the plan's benefits.
Step 4: Employer takes annual deduction for the amount of the contribution.
Step 5: Plan is updated annually.
The Result:
An easy to understand retirement plan. Fully guaranteed retirement benefits. Significant retirement asset build-up in a short period of time. Maximum deductions for the business.
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