Fully Insured Defined Benefit Pension arrangements are the top tier of small business retirement planning.
Known as "412(e)(3) Plans" they are completely guaranteed by life insurance company products. Unlike traditional Defined Benefit Plans or Profit Sharing Plans, the 412(e)(3) Plan invests exclusively in permanent life insurance and/or annuity contracts
with guaranteed rates of return. The plan is funded by consistent contributions for a predictable period of time, avoids the ups and downs of the stock market, while neutralizing the potential for equity losses and under-funded conditions. You get the largest contributions of any qualified retirement plan, by far, which means that you can invest more and accumulate at a faster rate than with any other tax deductible plan.