Direct Recognition Variable Investment Plan
Achieve Tax Savings & Wealth Building with a Direct Recognition Variable Investment Plan (DR-VIP)
Join us on Thursday, May 16th to learn about the Direct Recognition Variable Investment Plan, a forward-thinking retirement plan that is designed to optimize benefits for professional firms and businesses looking to increase tax-deductible contributions.
Introducing a forward thinking retirement plan design
USI Consulting Group's Direct Recognition Variable Investment Plan (DR-VIP) is a qualified retirement plan1 designed to optimize benefits, mitigate risk and minimize costs, for companies with business owners and professionals who seek high tax-deductible contributions2 in excess of the defined contribution plan limits.
Typical retirement plans for professional firms & businesses
Defined contribution plans (401(k) and profit sharing) are subject to relatively low contribution limits3. Traditional defined benefit and cash balance plans permit much higher contributions4, but assets must be pooled together, and the firm is responsible for underfunding due to underperforming investments. This creates a risk of unfunded benefits and uncertainty with respect to future contribution requirements.
How DR-VIP works
DR-VIP leverages the best features of DC and DB plans:
401(k) profit sharing plan assets continue to be
individually directed by participants
Participants may access their 401(k) profit-sharing and
DR-VIP benefits 24/7 online or phone
DR-VIP assets are pooled together and invested in accordance with the firm's overall investment objectives
DR-VIP participant benefits increase or decrease in direct relation to investment results, mitigating the underfunding and overfunding risk associated with traditional DB pension plans and cash balance plans
DR-VIP advantages
- Contributions are tax-deductible
- Total contributions can exceed $300,0005 per person6
- Plan assets are exempt from creditors7
- Risk of the plan being underfunded is mitigated
- With the risk of underfunding mitigated, the plan assets can be invested to optimize returns
- Plan contributions are known, consistent and reliable
- Every plan is submitted to the IRS for review8
How USICG Can Help
To learn more about our Direct Recognition Variable Investment Plan, please visit our DR-VIP FAQs page, contact your USICG representative or reach out to us directly at VIPNewBizSupport@usi.com.
This information is intended for educational purposes only and should not be construed as an offer to buy or sell any product or strategy. You should contact your Financial Advisor with questions regarding your individual circumstance.
Additional information
