A 412(e)(3) plan is a fully insured defined benefit plan. This retirement plan is ideal for the small business owner for a variety of reasons. This plan will often provide a much greater tax reduction over more traditional retirement plans – which means lowering your AGI and keeping more of your money. This type of plan also provides you with more certainty and benefits for your and/or your employees versus plans where there really are a minimal amount of benefits aside from the tax deductibility of it.
