What type of small business is a 412(i) plan ideally suited for?
A. While virtually any business can set up a 412(i) plan, a company without, or with very few (6 or less, for example), employees, is the ideal candidate. In addition, this plan works best when the business owner is between the ages of 40-70, or within 10 years of retirement, because this type of plan favors older participants. In fact, this plan works very well for those owners who haven’t been able to save much for retirement and would like to save a substantial amount in a relatively short period of time.
