NU Online News Service, Aug. 28, 2003, 4:52 p.m. EDT – Lincoln National Life Insurance Company, a unit of Lincoln Financial Corp., Philadelphia, is promoting use of its Retirement Benefit Annuity and WL-Icv whole life policy in 412(i) retirement plans.
A 412(i) plan is a vehicle that the owner of a small business can use to set up a personal defined benefit retirement plan. The owner must fund the plan with annuities, life insurance policies or a combination of annuities and life insurance policies.
The plans are appropriate for owners of corporations, partnerships and sole proprietorships with 15 or fewer employees, Lincoln says.
A 412(i) plan can provide guaranteed income along with conservative assumptions that let owners make bigger initial plan contributions than traditional defined benefit plans usually allow, Lincoln says.