412(i) Tax Solutions

VIP 412(i) retirement plans can provide large tax deductions, in some cases well over $300,000 per year. VIP 412i plans are unique 412(i) plans, because they offer a wide range of investment options. VIP 412(i) plans are so unique they are protected by a U.S. patent application. [see 412i history for more information].

Because you can receive such large tax deductions using VIP 412(i), the only question you have to ask is, "How much of your tax money do you want to keep for your retirement and leave to your family?"

What is a VIP 412(i) plan and how is it different from a regular 412(i) plan?
A 412(i) plan is a type of defined benefit plan. Defined benefit plans fix the benefit you will receive at retirement. Once the benefit is defined, you have to contribute enough each year to the plan in order to build a retirement fund large enough to pay you the defined benefit promised. This is different than a defined contribution plan, such as a 401(k) plan, where you put a fixed amount of money in the plan each year and your retirement is not a defined amount, but whatever your pot of money will buy. In a regular 412(i) plan, you have to make the plan's investments through a whole life type insurance product. This gives you a very low return on the investments. With a VIP 412(i) you can invest in basically any product offered by an insurance company. Thus, you can invest in "variable" type products, which will yield a return (or loss such as was seen in the past couple years) based on the stock market. Historically, the stock market returns have been much higher than the fixed "guaranteed" returns of whole life type insurance products. The amount of the ultimate retirement benefit is still fixed with a VIP 412(i) plan, just like any other type of defined benefit plan, but you can make investments that potentially will get you to your goal a lot faster. With a VIP 412(i) plan, not only is your benefit fixed, it is guaranteed by a large insurance company. The patented principles used in a VIP 412(i) plan are the only way you can have a qualified retirement plan that has a guaranteed retirement fund and allows you to invest in market type returns.

Phillips & Associates are experts at creating tax planning structures using Section 412(i) of the IRS Code. Let us help you or your clients save taxes, protect assets, and increase wealth in this turbulent financial world. Call 800-806-1998.