Why are 412(i) plans now gaining popularity?

Although our team has been implementing fully insured plans since the late 70's, and 412(i) plans since the early 80’s, recent changes in the tax code have made the plan even more beneficial to business owners. Section 415(e) of the tax code was repealed in late 1999. The repeal eliminated the need for annual actuarial plan certification. The actuarial calculations are now provided by the insurance company offering the 412(i) investment products. In addition to the cost savings of the actuarial certification, the repeal also allows for greater pre-tax funding contributions that can exceed other qualified plan contribution amounts.