A 412(i) plan is a Defined Benefit Plan that meets the special requirements of section 412(i) of the Internal Revenue Code. Like a Defined Benefit Plan, it provides employees with the assurance of guaranteed retirement benefits that are independent of investment performance.  It also allows an employer to save more for retirement than any other type of qualified plan.

Key Benefits

  • All benefits are guaranteed by an insurance company as long as contribution requirements are met
  • Plan allows business owners to save more for retirement than other plan designs
  • Plan is exempt from some of the administrative burdens that apply to other Defined Benefit Plans
  • Plan tends to favor older workers
  • Vesting of employer contributions creates an incentive for employees to remain with the employer and thus reduce the cost of turnover


Plan Design
We review each plan provision to help the client understand the options available and the implications of each. We also assist in the selection of investment products that are consistent with the objectives of the trustees and meet the requirements of 412(i).
We prepare the plan document, Summary Plan Description, specimen Board Of Directors Resolution adopting the plan, and QDRO procedure. We obtain a determination letter from the IRS approving the plan. We also provide forms for employees to make various elections and designations.
Ongoing Administration
The ongoing administration of the plan includes trust accounting, eligibility determination, Summary Annual Report, Top Heavy determination, application of all contribution and deduction limits, and preparation of the IRS form 5500 filing.  We determine the contribution necessary to meet the funding requirements of Section 412(i).  We continually monitor the operation of the plan to insure that it continues to maintain its qualified status even when the requirements change.