How Much Can The Initial Deductible Contribution
to a 412(i) Defined Benefit Plan Be:
The 412(i) Defined Benefit Plan can offer older business owners higher
deductions and contributions than virtually any other qualified retirement plan.
Designed to help the older business owner accumulate funds for retirement in a
short time frame, these plans are not a “grey area” and have been in existence for
more than 25 years. 412(i) plans may also be a viable option for over-funded
Defined Benefit Plans. The chart below shows just how these first year tax
deductions can be. Below is an illustration of the maximum first year contribution
created by using life and/or annuity products at selected ages.
Age 412(i) Annuity Only 412(i) Life & Annuity
40 $ 97,815 $ 121,024
45 $ 137,259 $ 170,700
50 $ 210,468 $ 266,104
55 $ 272,873 $ 359,845
If your goal is a large deduction for your business and a secure retirement benefit
for yourself, the special characteristics of the 412(i) Defined Benefit Plan are worth
exploring. Allow the pension professionals at Jamaal Wilkes Financial Advisors to
provide you with FREE QUALIFIED SECOND OPINION. You may not be receiving
the maximum contribution allowed under the law. Have your plan reviewed today
for increased benefit opportunities.
All We Need From You Is An Employee Census.
Note: The contributions above are based upon maximum for 2006 and the guaranteed annuity
purchase rates, the guaranteed insurance cash values, and the guaranteed annuity
accumulation rates of one of our preferred vendor's 412(i) qualified life and annuity products.
The numbers also assume the business owner at the selected ages has earnings of at least
$175,000 and the normal retirement age is 62.
Neither Jamaal Wilkes Financial Advisors nor its representatives gives legal, tax or
accounting advice. If you need such advice, consult your attorney, accountant or personal
tax advisor.
CA License #0B90669.
MAXIMUM FIRST YEAR CONTRIBUTIONS
