You might have a 412E plan and are maybe thinking about a 412E Rollover. If this is the case for you, then consider using the insurance agents at Best Life Insurance to assist you with the process.

Any rollover process takes some time and assistance. There is always making the decision that you want to rollover your plan, and then there is actually following through with that thought. In addition to that, finding the right company to rollover to and assist you with the process is another step in itself.

Best Life Insurance can help you decide on all of those things. For one, we are a fantastic insurance company that assists people with plan rollovers every day. We consider ourselves as one of the best, and that is because we have the evidence to back it up. Our clients are always glad that they choose us to assist them with their 412E Rollover and the other services we provide.

The rollover process with us always goes very smoothly, and we walk our clients through every step. Keeping you informed and making sure that you understand every part of the process is our job. So, you can trust us to do that.

Let’s get started with learning more about your 412E Plan and then learning about the rollover process.

What is a 412E Plan?

For many, this plan might not be so mew for you because you are planning on doing a 412E Rollover. But there is always more to be learned, so let’s look at what this 412E plan is.

The name of this plan used to be the 412I Plan, but it was changed in 2006 by The Pension Protection Act. This plan is unique because it is funded by purchasing life insurance contracts, fixed annuity contracts, or a contract that combines the two. With this being said, the person with this plan is not required to calculate an annual contribution.

It can easily be described as a pension plan that is tax-qualified. This basically means that any contribution that is made to the account can be used as a tax deduction that year for the company. They use annuities or life insurance to pay for this plan, as we said before.

These annuities basically act as a way to ensure a steady income once that person has retired. The insurance company in use very easily pays it once they have met the retirement qualifications.

It is very important to remember that this plan can only be funded this way and through an insurance company. So, keep this in mind as you are planning your 412E Rollover.

Who is this plan for?

The 412E Plan is for a certain group of people. This plan is usually selected by small business owners looking to get large tax deductions currently to guarantee income during their retirement and who are trying to maximize contributions.

To be a little more specific, this plan is beneficial to business owners who are much older than their employees, are well-established, and have a high-profit business.

Many small businesses and their owners find it hard to save, contribute to their retirement plan and still invest in their business at the same time. And that is why this plan was created mainly for small business owners. It puts their retirement at the forefront and has a special tax deduction benefit.

This is extremely helpful in the moment and in the long run. In addition, it also gives them the ability to continue investing in the company and growing it.

Before signing up for this plan, it is always advised to get the advice of an insurance agent. They will let you know if you are eligible to sign up for the plan. And if you are eligible, they will assist you in signing up for the plan.

Advantages of a 412E plan

The reasons and advantages for getting a 412E plan are a lot. This is why small business owners sign up for the plan. When speaking to your insurance agent, they will list to you all the benefits and advantages of this plan and how it can be of help to you now and in the future. But we are going to let you know a couple of these benefits now.

Like we said before, when a contribution is made into the account, it can be used as a tax deduction for the business’s tax in that year. This is because contributions made to the account are usually large sums. So, businesses can use that sum and a tax deduction.

In addition to this, the plan owner gets the benefits associated with this plan with no market risk. So if something happens with the market, you don’t have to worry about it; your benefits are still intact.

Other retirement plans have a minimum contribution that the owner must make. It can be quarterly or monthly; it ultimately depends on the plan. With a 412E plan, there is no way that the account can be underfunded in a year. This is because there is already a set amount paid into the account.

412E Rollover

Now when it comes to a 412E Rollover, the steps are generally similar to other retirement plans.

To begin this process, you need to make sure that you have chosen an insurance company to transfer the funds. With any rollover process, this is the best option. The reason we say that is because of the 60-day rule. This rule states that the assets in a retirement account that are rolled over can only be out of an account for 60 days. If it passes this time, there will be a large penalty.

So, choosing the insurance company, the money will be rolled to it the best decision. In addition, they will be able to assist you with all the paperwork process and all the little steps that need to be done accurately.

Make Best Life Insurance the insurance company that assists you with your 412E Rollover.

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