PENSION / 412i PLANS

Only a Few Years Until Retirement?

Older business owners have fewer years until retirement. They need to be able to make higher contributions to their retirement plans in order to accumulate sufficient retirement assets for a secure and comfortable future.

The Fully Insured Plan (the 412(i) Plan) can be an excellent solution for those age 35 or older. The IRS permits older business owners to make higher annual contributions to this plan than to virtually any other type of qualified retirement plan. And a Fully Insured Plan offers a high level of security, since all plan benefits are provided by guaranteed funding vehicles.

Maximum Contributions - Plan Comparisons
Age	Ret. Age	Trad. Profit Sharing	Trad. Defined Benefit	Fully Insured Plan
45	62	$40,000	$75,160	$145,236
50	62	$42,000	$128,166	$236,305
55	62	$42,000	$188,209	$332,357
60	65	$42,000	$194,847	$338,216

Figures assume the maximum benefit and contribution allowed under the applicable provisions of the Internal Revenue Code. These figures may change in the future since the applicable limits are adjusted for inflation annually. The traditional defined benefit and fully insured plans use a death benefit based on Revenue Ruling 74-307 and Guardian’s Pension Trust Whole Life 100 Policy and 1000 Policy (Preferred) 98-19PT and Pension Trust Retirement Annuity.

The chart above shows the highest first year contributions allowable in three different types of retirement plans. The contributions to the Fully Insured Plan are significantly higher in all cases shown above. In fact, the Fully Insured Plan’s maximum contribution can be almost $300,000 higher than the maximum contributions permitted in the traditional profit sharing plan for the 60 year old.

The Fully Insured Plan is a qualified retirement plan that will provide your client with a benefit at retirement either as a monthly income or a lump sum distribution. Since this plan is funded through Guardian’s life insurance and retirement annuity policies, rather than an investment fund, the contributions they can make for themselves and the tax deduction available for their company can be higher than those allowed in other qualified plans. And every dollar of the promised benefit will be funded with guaranteed policy cash values.

	Fully Insured Plan - Agent Training Presentation	Agent oriented PowerPoint on the hottest market in qualified retirement plans today, the 412(i) plan -- Updated for 2003 with script and 4 new examples
	Factfinder for Proposals	Fax census to Carolyn Lambert, 614-785-4255, or e-mail her here.