Defined Benefit Plan

A defined benefit plan is an employee sponsored plan for retirees which is designed to pay a set monthly benefit when the person retires. The contributions of a defined benefit plan are based on a dollar benefit amount to be paid at retirement age, the number of years the employee has worked for the employer, and the salary of the employee. The investment benefit plan is under complete control of the company.

Defined benefit plans are set up to act as incentives for an employee to remain with a company, hence it rewards workers for their loyalty to the company.

The book by Nick Paleveda called "412(i) Defined Benefit Pension Plans" and published in 2005 is the first book ever published on 412(i) plans. What is a 412(i) plan? If you know what a 401(k) plan is, the 412(i) plan is the defined benefit variant of the 401(k) plan. The plan is meant for the baby boomers who have not managed to save enough money for retirement. When Congress passed the EGTRRA in 2001, it put the benefits back into defined benefit plans. These plans were widely used from 1974-1987 and now they are back.

A participant who is normally a doctor or a dentist or a small businessman can save huge sums of money in a guaranteed account for retirement. The funds are tax deductible by the company and not included in his or her income tax. The funds are held in a guaranteed annuity and guaranteed life insurance contracts. These contracts usually guarantee a minimum interest rate of 3% but no cap on the maximum and it can be as high as 7-8%. The tax savings alone can mean a 35% savings on your retirement funds!

The 412(i) Defined benefit plan also is secure from creditors. It's a real benefit for doctors in a high-risk area of practice. Want to learn more? This is the book that explains it all. It's a "Must" read for anyone in the 412(i) market.

This book explores the fastest growing retirement plan in the U.S. known as "412(i) Defined benefit Pension Plans". The book reviews what a 412(i) plan is, how a small business owner can use it to secure a "guaranteed retirement," how you can legally deduct $50,000-$100,000 or even $200,000 a year by placing the funds into your guaranteed pension.

The book is written by tax attorney Nick Paleveda MBA J.D. LL.M who is also a contributing author to "The Life Insurance Answer book for Qualified plans and Estate planning" (Panel Publishing 1997) with 20 years experience and assisted by 2 pension actuaries with over 35 years experience. If you are a doctor, lawyer or small business, this plan can get you to a safe and secure retirement. The book also covers the abusive plans with "heavily loaded" life insurance contracts that are being promoted by a few major insurance companies that you should avoid. For more information visit www.The412iBook.com

What Is 401k Plan
What is a 401k plan? It is a powerful tax advantaged retirement instrument, provided by some employers to help you save money for your retirement.

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