Many successful business owners are looking for creative retirement planning solutions. Are you looking for a retirement plan that can maximize current deductions and provide benefits at retirement that are guaranteed and not dependent on investment performance?

A 412(i) Plan can provide the following:

  • a guaranteed monthly benefit1 at retirement
  • a substantial income tax deduction for the employer
  • substantial death benefits
  • Rewards for loyalty and may help increase productivity

A 412(I) plan is a fully insured defined benefit plan.

The employer’s tax deduction is based on the contributions that are necessary to provide the retirement benefits under the plan. With a 412(i) plan, the contributions are based upon the insurance company’s guarantees.1

Using a fixed annuity and whole life insurance products, a fully insured defined benefit plan can be designed to provide current deductions that are much larger than uninsured plans. It also guarantees the future benefits and can provide substantial life insurance protection.

Is a 412(i) plan the right choice for you?

  • If you are a higher-paid business owner and are older than many of the employees;
  • If your business is showing a good profit and is a closely held corporation, sole proprietorship or partnership with a limited number of eligible employees;
  • If you are seriously concerned that your own assets may not provide the comfortable retirement income that you desire;
  • If you wish to provide retirement benefits with tax-deductible contributions.

If this sounds attractive and meets your needs, the 412(i) plan may be the right choice for you.

1 Guarantees are contingent on the claims-paying ability of the issuing company or companies.

The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

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