412(i) Plans

A 412(i) Plan is a qualified pension, or defined benefit, plan. But it offers the unique advantage among qualified plans of allowing an individual to set aside a large amount of current income toward retirement, more than most qualified plans such as 401(k)’s, profit-sharing plans, and even standard defined benefit plans.

As such, a 412(i) is ideal for business owners with high gross income, who would otherwise pay ordinary income tax on a large portion of their current income. This includes sole proprietors or business owners, consultants, doctors, attorneys, and investors. If structured correctly, the plan can save a business owner a bundle in current income taxes while maximizing future tax-favored income.

412(i) plans require careful design and implementation and the experience in plan design and knowledge of tax regulations that only a handful of firms can offer. At EPIC, we have been designing and implementing qualified and nonqualified plans for more than 15 years.

Contact us to discuss how a 412(i) plan may benefit you.