Do 412i Plans Work
After the proposed New Regs?

Recent proposed regulation changes are directed at curtailing the use of certain arrangements that skew the benefits already afforded by Section 412(i) plans.

They do not undermine the general utility and viability of code sanctioned legitimate Section 412(i) plans, which offer important advantages over other retirement plans.

• Fully Insured 412(i) plans allow for larger annual tax-deductible contributions than standard defined benefit plans. This means clients can fund their retirement plans, to accumulate the one to three million they need for retirement.
  
  
• 412(i) plans generate the maximum deduction allowed by any type plan. Investments are guaranteed by the insurer, ergo no risk to the trustee or the client with regard to the investment aspect of the plan.
  
  
• Less expensive to implement and maintain. 412(i) plans administration is less costly to implement and maintain than other types of qualified plans and is available for Corps, LLC’s, Partnerships or Sole Props.
  
  
• This is a plan approved by the IRS - that allows the significant accumulation of retirement assets in a short period of time. A plan that is Easy to Understand, 100% tax deductible, with guaranteed results and is Asset Protected.

The IRS, in the recent Revenue Rulings, has told us what does and does not work. It has said 412(i) is still viable, just not the abusive concepts and aggressive designs such as the 100% life insurance approach.

These proposed changes indicate that the 412(i) plan is here to stay.

To speak directly with a Senior 412i Advisor who can answer your questions call 800-433-9667

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