A 412i is a defined benefit retirement plan that has been around since 1974. A well-structured 412i plan will incorporate both life insurance and annuities, with the majority of the contributions going to the annuities. Contributions are generally 100 percent tax-deductible and used to fund the ongoing premiums to the insurance company that will pay the guaranteed benefit.

This plan is ideal for the self-employed or for a small business with 6 or fewer employees. Older investors who failed to save for retirement during their early working years will find the plan an ideal way to catch up and build wealth for future income.


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