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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.
