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Retirement Planning
Chapter 4: Qualified Pension Plans/412(e)(3) PLANS - BENEFITS (Formerly 412(i) Plans)
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Chapter 4: Qualified Pension Plans

412(e)(3) PLANS - BENEFITS (Formerly 412(i) Plans)

01.Core Concepts

• A specific type of defined benefit pension plan that is funded entirely by a life insurance contract or annuity. • Employer claims tax deduction for contributions made to pay premiums. • Compared to traditional defined benefit plans, higher contributions are permitted to fund the life insurance or annuity contract.