You Might Think 2024’s Over — But the IRS Says Otherwise
It’s almost August. Your books are “closed,” your CPA is on vacation, and you’ve already filed your return.
But if you're a high-income business owner looking to lower your 2024 taxes — you’re not out of moves. In fact, there’s one you probably haven’t heard of, and it can unlock six-figure deductions even after most people think the game is over.
It's called a 412(e)(3).
And no, it’s not a loophole. It’s a section of the Internal Revenue Code built for people just like you — business owners with strong income, few employees, and a big tax problem.
So What Is 412(e)(3)?
It’s a fully insured defined benefit plan. Which is a fancy way of saying it’s a pension-style retirement plan funded entirely with insurance products like annuities and whole life.
Here’s why that matters:
You get guaranteed future retirement income (no market risk)
You can contribute way more than a 401(k) — often $100k to $300k+ per year
Those contributions? 100% deductible to your business
It’s predictable, it's conservative, and it’s been hiding in plain sight while most business owners stick to vanilla retirement plans and overpay Uncle Sam.
Who Is This For?
If you’re in your 40s, 50s, or beyond…
If you run a successful business or professional practice…
If you’re looking for a legal way to move money from the IRS column to your own balance sheet…
…this plan might be a fit. Especially if:
✅ You already max out your 401(k) or SEP
✅ You don’t have a lot of full-time W-2 employees
✅ You want big deductions without market volatility
✅ You’re behind on retirement but have strong current income
These are ideal for doctors, consultants, franchisees, real estate pros, and small business owners with consistent profit and high taxes.
“But I Already Filed My 2024 Return…”
That doesn’t mean you’re done.
Here’s what most people miss: the IRS lets you establish and fund qualified plans by your extended due date — and still count the deduction for last year.
So if your business files on extension? You're still in the window.
Even better — if you already filed but didn't maximize your deductions? You may be able to set up the plan now and file an amendment to reclaim a large refund.
That’s right — you could literally get money back from the IRS for something you haven’t even done yet.
Why Hasn’t Your CPA Told You?
Because most CPAs don’t specialize in advanced retirement structuring. They keep you compliant and file your forms — but they don’t design legacy-building tax shelters.
That’s not a knock. It’s just not what they’re trained to do.
412(e)(3) planning isn’t a plug-and-play product. It’s a strategy. It takes careful coordination, customized design, and an understanding of how to make the insurance code work for entrepreneurs — not just for corporate executives or big law firms.
That’s what I do.
If you’re looking to:
Slash your 2024 tax bill
Supercharge your retirement savings
Lock in guaranteed income later
And still have time to do something about it this year…
Then don’t ignore 412(e)(3).
The clock’s ticking, but the IRS isn’t done with 2024 yet — and neither should you be.
