We Look Forward To Showing You What We Can Do!

Close Icon
   
Contact Info     949.559.4912
Email Us

DPS Overview – What Is It?   arrow

DPS is an acronym for Defined Pension Solution.  DPS is a little known and vastly underused qualified plan which falls under IRS Code Section 412(e)(3).  Generically, it is a “Fully Guaranteed, Split Funded, Defined Benefit Plan” which can allow for very large pre-tax contributions beyond other typical qualified plans.  It is ideal for self employed individuals or partners with high incomes and few employees.  The older the participants the larger the possible pre-tax contributions.  Pension Actuaries determine the maximum amount of possible contribution.  Synergy will obtain this information and proposal for you.  Better yet, the DPS plan is exempt from minimum funding rules, It is important to re-iterate that the retirement benefit is GUARANTEED, since when most of us think of qualified plans with various investment options, those investment options almost always involve options where principal is at risk and there is no guarantee of the result.  Once again, this is not the case with the DPS/412(e)(3) program, as the outcome is guaranteed.  This type of plan, with its guaranteed values and safety of principal, is also highly desirable for individuals hurt in the past by major market downturns and ‘corrections.’ All plan assets are held by an insurance company, which issues special annuity and life insurance products with guarantees.  This provides another benefit not available with other qualified plans.  That is, should the participant die prior to retirement, a portion of the beneficiaries’ death benefit is income tax-free…not fully taxable like the account value in other retirement plans. We train the financial professionals we work with, utilizing an all-inclusive module containing a significant amount of material, some of which can be provided to clients.  The key form that our associates utilize with a prospective client, which gives us the ability to prepare a quote for the DPS (412(e)(3) plan is the PPR (Pension Proposal Request) Form.    It all starts right there.  Our goal is to make it as simple as possible for the associate as well as the client and we have accomplished that.  Please review the few items below:

DPS INTRODUCTORY FLYER

DPS Tri-Fold Brochure – Hand Out

DPS Tri-Fold Brochure – Mail

DPS AUDIO FILE (Play Immediately Below) 

 

DPS VIDEO  

 

PPR (PENSION PROPOSAL REQUEST) FORM