High Tax Deductible Contributions – Guaranteed Benefits* A unique qualified plan for today’s small business.
Successful business clients can benefit from a Fully Insured 412(e)(3) Defined Benefit plan1 which offers:
A Fully Insured 412(e)(3) Defined Benefit plan is a defined benefit retirement plan, the funding requirements of which fall under IRC Section 412(e)(3). If a plan meets the requirements of this subsection, it is exempt from the complex funding rules of Section 412 of the Internal Revenue Code and applicable to all other defined benefit plans.
Fully Insured 412(e)(3) Defined Benefit plans have been around for over 60 years and may be an attractive solution for business clients. They offer large current tax-deductible contributions and guaranteed* retirement benefits, all of which can only be provided by a life insurance company.
In order for a plan to qualify under Section 412(e)(3), certain requirements must be met. Although this subsection allows an exception from the complex funding requirements found in Section 412, a special set of conditions must also be satisfied as follows:
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