412(i) Defined Benefit Retirement Plans

• Your plan can allow for age 21 and one-year of service eligibility.  Two years of service with full and immediate vesting.
• You can allow for a graded vesting schedule with a one-year or less eligibility waiting period.
• Plan must be funded exclusively with annuity products or a combination of life insurance and annuity products. 
• Fully Insured Defined Benefit Plan Arrangement.  Must use fixed annuities and whole life insurance products.
• No policy loans are allowed.
• Larger initial tax deductions.
• More stability in contribution levels.
• Simpler plan administration - does not require an enrolled actuary.
• A secure promise of future benefits guaranteed by an insurance company.