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 retirement 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 may exceed $300,000 per participant5
  • Plan assets are exempt from creditors
  • 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 review6

1 As defined under IRC Section 401(a) and IRS Regulation 1.411(a)(13)(d)(6).
2 IRS Code Section 401(a)(13).
3 In accordance with IRC Sections 402(g) and 415(c)(1)(A).
4 In accordance with IRC Section 415(b)(1)(A).
5 Determined by individual participant age & other factors.
6 The submission, made on behalf of each individual plan, is an application for a letter of favorable determination of the plan’s tax qualification.

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. | Neither USI nor its affiliates and/or employees/agents/representatives offer investment advice to plan participants. | 1024.S0426.0033