Pension Planning for SME’s
At Arkapital, we offer specialized pension planning services designed for small and medium-sized enterprises (SMEs). Our 412(e)(3) Plan is a unique, IRS-approved retirement solution that provides business owners with tax advantages and guaranteed retirement benefits. We are here to help you create a sustainable and reliable pension plan for both you and your employees.
What is a 412(e)(3) Plan?
A 412(e)(3) Plan is a defined benefit pension plan that is fully insured with life insurance and annuity contracts. Benefits include:
Higher Contribution Limits: Contribute more to your retirement compared to traditional plans.
Tax Advantages: Enjoy significant tax deductions on contributions.
Guaranteed Benefits: Retirement benefits are guaranteed by the insurance contracts.
Attract & Retain Talent: Offer your employees a secure and reliable retirement plan.
This plan allows business owners to contribute larger tax-deferred amounts, ensuring retirement benefits with guaranteed payouts. Contact us to learn more.
Key Characteristics of a 412(e)(3) Plan
Guaranteed Retirement Benefits:
The plan provides certainty in retirement benefits because the funding comes from life insurance and annuity contracts, both of which are backed by the issuing insurance companies. This guarantees that the plan will provide the promised benefits as long as the premiums are paid..
Tax Advantages:
Contributions to a 412(e)(3) Plan are tax-deductible for the employer, meaning businesses can lower their taxable income while contributing to employee retirement. Employees do not pay taxes on contributions until they begin receiving distributions in retirement.
Larger Contribution Limits:
The 412(e)(3) Plan allows for significantly higher contribution limits than other retirement plans, such as 401(k)s. This makes it an attractive option for business owners looking to maximize their retirement savings while reducing current taxable income.
Employee Benefits:
A 412(e)(3) Plan can be used to provide guaranteed retirement benefits to employees as well. This can be a powerful tool for attracting and retaining talent by offering a secure retirement benefit that is not dependent on market performance..
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Take control of your financial future today by booking a consultation with our expert advisors. Schedule your personalized consultation now and let’s create a game plan for your financial success.