412(i) Defined Benefit Plan Allows the Highest Tax-Deductible Contribution toward Fully Insured Retirement Benefit, up to $160,000, Annually at retirement age - 62 to 65.

Optimum 412(i) invites you to participate in 412(i) defined benefit retirement plan that can provide owner(s) and/or key executive(s) of a professional association and partnership with a guaranteed retirement benefit, up to $160,000 annually, i.e. $13,333 monthly, payable at age, 65, for the lifetime of the participant. The 412(i) defined benefit plan, also known as a "fully insured plan", can generate the highest tax deductible contributions allowed by law. A surgeon, age 56, can save $124,869 in taxes for the current fiscal year, 2003. Annual tax-deductible contributions are invested in fixed annuity that guarantees annually 3% fixed return. Annual earnings on contributions are tax-deferred till retirement age, 65 (see enclosed case study illustration).

Recent changes in the tax law allow the 412(i) defined benefit retirement plan to generate the highest tax deductible retirement contribution, relative to the existing defined contribution retirement plans, like 401(k). Section 415(e) of Internal Revenue Code, which had limited the effectiveness of the 412(i) plan, was repealed. The Economic Growth & Tax Relief Reconciliation Act of 2001 (EGTRA) significantly expanded the benefit limits of the 412(i) defined benefit plan for high-income participants. The excise tax on excess accumulation was repealed in 2000.

According to a sample case study enclosed, based on IRS-approved 412(i) prototype plan document, for an owner and/or key executive of P.A., age 56, with only one qualified and vested medical staff, age 26, Dr. John. Doe can have a total of $2,640,098 tax-deductible contribution, by age 65, with a tax saving, based on 40% tax rate, amounts to $1,056,039. A lump-sum of $2,885,931 is needed to fund and guarantee a monthly retirement benefit in the amount of $13,333 at age 65, adjusted for cost of living increases, over the lifetime of the participating owner(s)/key executive(s) of professional association, partnership and/or corporation. The 412(i) defined benefit retirement plan can provide a total tax-deductible contribution of $304,492 for 2003 tax year to guarantee a retirement benefit of $160,000 annually at age 65. (see enclosed case study illustration).

The 412(i) plan is funded with a combination of guaranteed fixed annuity and/or permanent life insurance products as required by 412(i) defined benefit plan. Also, 412(i) plan allows for lump sum cash at retirement instead of monthly payments. The lump-sum cash can be rolled over to an IRA for continued tax deferred earning growth. Clearly, 412(i) defined benefit plan can be an ideal retirement solution for highly compensated professionals and highly profitable small businesses seeking to maximize their current tax deduction and at the same time secure a guaranteed retirement benefit.

Highly qualified specialists at Optimum 412(i) Pension services, Inc. would work closely with your CPA & tax advisor in the stages of establishing, implementing, and maintaining the 412(i) defined benefit plan. We provide you with a complimentary IRS approved prototype plan illustration.