412(i) plans continue to generate both interest and caution following recent Internal Revenue Service and Treasury Department actions to crack down on a handful of abusive schemes that had cropped up in this marketplace.

Unlike 401(k) and other defined-contribution plans, a defined-benefit 412(i) plan is not subject to the $41,000 contribution limit ($44,000 with catch-up salary deferrals). Contributors may deduct whatever the plan cost is calculated to be in order to fund the known benefit at retirement.

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