412(i) Plan

A 412(i) plan is a type of defined benefit pension plan that allows employers to make contributions that are based on the plan's funded status. This means that the employer can contribute more to the plan when it is underfunded and less when it is overfunded. This can help to ensure that the plan is adequately funded and that participants will receive the benefits they have earned.

There are a few key requirements that must be met in order for a plan to qualify as a 412(i) plan. First, the plan must be a defined benefit plan. Second, the plan must be sponsored by an employer that has at least 100 employees. Third, the plan must have a funding target that is based on the plan's projected benefit obligation.

The funding target is the amount of money that the plan needs to have in order to pay all of the benefits that have been promised to participants. The employer is required to make contributions to the plan each year in order to meet the funding target. The amount of the contribution is based on the plan's funded status.

If the plan is underfunded, the employer is required to make a contribution that is equal to the difference between the funding target and the plan's current assets. If the plan is overfunded, the employer is allowed to make a contribution that is less than the difference between the funding target and the plan's current assets.

The 412(i) plan is a valuable tool for employers who want to provide their employees with a secure retirement. By allowing employers to make contributions that are based on the plan's funded status, the 412(i) plan can help to ensure that the plan is adequately funded and that participants will receive the benefits they have earned.

Here are some additional details about 412(i) plans:

* The 412(i) plan is a type of defined benefit pension plan. This means that the plan provides a guaranteed benefit to participants, regardless of how well the plan performs.
* The 412(i) plan is subject to the funding requirements of the Employee Retirement Income Security Act (ERISA). These requirements ensure that the plan is adequately funded and that participants will receive the benefits they have earned.
* The 412(i) plan is a valuable tool for employers who want to provide their employees with a secure retirement. By allowing employers to make contributions that are based on the plan's funded status, the 412(i) plan can help to ensure that the plan is adequately funded and that participants will receive the benefits they have earned.