Business Center

Employer Sponsored
Retirement Plans

Qualified Plans

Fully Insured 412(e)(3) Plans

(formerly 412(i) plans)

A Fully Insured plan is a type of defined benefit retirement plan. Since it is a tax-qualified retirement plan, every dollar a business owner or professional contributes to the plan will, in most cases, produce an immediate tax deduction for their company.

In a traditional defined benefit plan, benefits are funded primarily through an investment fund. The business owner determines the investment allocation and can include non-guaranteed as well as guaranteed assets.

With Fully Insured Plans, the benefits are funded solely with contracts issued by an insurance company. For plans sponsored by Guardian, all plan assets are either in retirement annuity contracts or a combination of retirement annuity contracts and whole life insurance; both the annuities and the life insurance have guaranteed premiums and guaranteed benefits.

The 412(e)(3) plan has some special incentives for small business owners and professionals. They include:

  • All contracts will have level annual premiums
  • Benefits will be guaranteed at retirement
  • Policy dividends* or excess earnings will reduce the plan cost
*While no insurance company can predict what their annual dividends will be, Guardian has a fine record of paying dividends to policyholders. Naturally, past dividend history is no indication of or guarantee of future performance.
The dividends in your Fully Insured 412(e)(3) plan must be used to reduce plan costs. Consequently, it can enable your business to make large tax-deductible contributions in the early years, while it can better afford to do so, and reduce the contributions through dividends in later years.

Securities products and services are offered through Park Avenue Securities LLC (PAS) 244 Boulevard of the Allies, Pittsburgh PA 15222 1.412.391.6700. PAS is an indirect wholly-owned stock subsidiary of Guardian. Neither Lifetime Financial Growth, LLC. nor Luttner Financial Group Ltd. are affiliates or subsidiaries of PAS or Guardian.

 

PAS is a member FINRA, SIPC.

 

The Information on this site is intended for the residents of Pennsylvania, Ohio, West Virginia, and Maryland. The financial representatives of Lifetime Financial Growth are not licensed to sell securities in all 50 states. To find out if an agent is licensed in your state, please contact Cheri McElroy at 412-391-6700.

 

We are licensed to sell Insurance in the following states: Pennsylvania,Indiana, West Virginia and Ohio.

 

Guardian, its subsidiaries, agents or employees do not give tax or legal advice.

The Living Balance Sheet® and the Living Balance Sheet® Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected under U.S. and International copyright laws. © Copyright 2005-2012, The Guardian Life Insurance Company of America

 

Guardian does not offer Property & Casualty and Individual Health nor do we provide services for them. Disability income and long term care insurance underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Products are not available in all states. Product provisions and features may vary by state.

 

Important Consumer Information: A broker-dealer "BD", investment advisor "IA", a BD agent, or IA Representative may only transact business in a state if first registered in the state, or is excluded or exempt from registration in that state as a broker-dealer, investment advisor, BD agent, or IA Representative, as appropriate. Follow-up individualized responses to persons in a state by such a firm or individual that involves either affecting or attempting to affect transactions in securities, or the rendering of personalized investment advice for compensation will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker-dealer, investment advisor, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.

 

This Internet site may contain general information about various investment products. The information or opinions contained in this Internet site should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular investment product. Such information is directed solely to those individuals who reside in jurisdictions in which the representative is registered in the state where the consumer and/or prospective client reside. Any subsequent direct communication with a consumer and/or prospective client shall only be conducted by a representative that is registered in the state where the consumer and/or prospective client reside.