Actuarial science is a tax deduction’s best friend when it comes to defined benefit plans under ERISA. Conventional lump sum plans may be an option for small to medium business owners. But larger profitable companies are seeking serious six-figure deductions under the code to redirect those monies away from taxes towards their retirement plans. What distinguishes a retirement plan, which is Benefit Focused from one that is Lump Sum Focused?  (such as the traditional split funded insured defined benefit plan?)  A Benefit Focused Plan provides no distribution or cash out of the lump sum value of the participant’s monthly retirement benefit.  This restriction of no cash out permits the plan:             (1) -to fund to a more valuable benefit, i.e. a 100% joint and              survivor monthly retirement benefit;             (2) -to provide a death benefit of 100 times the monthly pension until the death of the participant while the surviving spouse continues to receive the participant’s monthly benefit (vs. the traditional split funded plan where the insurance death benefit must end at normal retirement age), and;             (3) -to protect the value of this benefit from estate tax since there ‘is no distribution of this value (vs. the traditional   Read more…