Compliments of
Price & Farrington, PLLC
Attorneys and Counselors at Law
425.451.3583
Page 1
Introduction to
Retirement and Tax Planning
Using I.R.C. §412(i) Plans
W hat is a little-known, underused technique to estab-
lish a pension plan that offers the following benefits?
; You receive immediate income tax deductions.
; Your plan assets grow income tax-deferred.
; Your plan assets are creditor-protected.
; Your plan benefits are fully guaranteed.
; Your plan contributions are not subject to the
Alternative Minimum Tax (AMT).
; Your plan provides retirement, disability and income-
replacement-on-death benefits.
; Your C or S Corp, FLP or LLC can adopt the plan.
; 90% of your plan contributions can benefit you as the
employer.
Price & Farrington, PLLC
Attorneys and Counselors at Law
12501 Bellevue-Redmond Road, Suite 215
Bellevue, WA 98005
(425)451.3583
www.estateplanning.com/pricefarr
The 412(i) Defined Benefit Pension Plan*
*A simplified defined benefit pension plan allowing for immediate tax deductions of
$70,000 - $300,000 annually.
Compliments of
Price & Farrington, PLLC
Attorneys and Counselors at Law
425.451.3583
Page 2
The 412(i)
Defined Benefit Pension Plan
What is a 412(i) plan?
A 412(i) plan is a simplified, guaranteed defined benefit pension plan established
under §412(i) of the Internal Revenue Code. It is a pension plan that is sponsored by
major insurance carriers. The plan is governed by the Employee Retirement and In-
come Security Act of 1974 (“ERISA”), the federal act governing the funding, vest-
ing, administration and termination of private pension plans. (29 U.S.C.A. §1001 et.
seq.)
How do recent changes in 412(i) law benefit me?
Recent changes in the law have made the 412(i) plan more popular and more power-
ful as an estate, tax and retirement planning tool. Section 415(e) of the Internal
Revenue Code, which limited the effectiveness of 412(i) plans, was repealed effec-
tive December 31, 1999. Section 41