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Security Mutual Life Releases New Retirement Plan Guide

Expects to help financial advisors better understand sophisticated plan designs

New York-based Security Mutual Life, through its subsidiary Security Administrators, has released a new retirement plan guide devoted to fully insured plans and cash balance plans.

According to Mutual’s retirement plan guide, the fully insured plans or cash balance plans, when used in combination with 401(k) plans, are likely to provide greater retirement accumulations than 401(k) plans for business owners and self-employed professionals. A properly designed fully insured or cash balance plan may also permit the advantage of tax-free survivor benefits to the participants’ surviving spouse or other heirs.

Federal law and regulations regarding fully insured plans and cash balance plans are more involved than those that apply to 401(k) plans. Security Mutual’s new retirement plan guide is reportedly designed to help financial advisors better understand these sophisticated plan designs.

George Kozol, chief marketing office of Security Mutual, said: “…tax relief of a type achievable with fully insured and cash balance plans is hard to come by for most successful business owners and professionals. At a time when the Federal government is providing stimulus relief packages to large publicly-held companies, small business owners and professionals have to fend for themselves. Fully insured and cash balance plans might be viewed as self-help stimulus plans for small business owners and independent professionals.”

The guide is available for download on company’s website.