Guardian Adds 412(i) Funding Products

Guardian has been selling products designed to fund 412(i) plans since 1960, but 412(i) plans have been getting more attention since the stock market slumped in 2001. Business owners who set up the plans can guarantee that they will receive large, steady retirement benefit payments. Because the guaranteed rates of return on plan assets are so low, sponsors can deduct huge contributions from taxable income.

The new Guardian 412(i) plan products include 3 annuities and several life insurance policies.

Guardian has cut the guaranteed rate of return to 3%, from 4%. The reduction in the rate guarantee will help customers take bigger tax deductions for plan contributions, Guardian says.