The Purpose of Succession Planning As the Senior Leadership teams in the business industry approach retirement, creating and developing the company’s succession plan is critical. Along with creating a succession plan, it is important for key executives to plan for retirement. When retirement planning is ignored and not clearly communicated, even the most thorough succession… Read more »
Using Life Insurance to Supplement Retirement Income
Reasons for Life Insurance When it comes to putting aside funds for a Business Owner’s retirement, the options beyond qualified plans are limited. Owners of pass through entities are taxed on the profits of their business regardless of what they do with the Company’s money. To build a source of retirement income that grows tax-deferred and could… Read more »
Tax Reform Faces an Uphill Challenge
Many Americans are eager to enjoy the across the board tax rate cuts that President Trump promised so frequently during the election. There are numerous Republican law makers that have said their top priority is a large tax cut. House Speaker, Paul Ryan, and Ways and Means Committee Chairman, Kevin Brady, have prepared a detailed… Read more »
Retirement Security Concerns Rise Post-Election
I recently attended The American College of Financial Services Board meeting where there was much discussion on the need for retirement income planning in today’s society. As President Donald Trump begins executing his agenda, investors are expressing a degree of apprehension and have concerns about what might lies ahead and how potential policy changes could impact… Read more »
Succession Planning In A Family Business
Recently, I attended a speech related to business succession planning in family-owned businesses. The speakers included a panel of three majority shareholders of family-owned businesses, one of which was working on its fourth generation of ownership. There were several excellent ideas and insights shared that I would like to share with you below. Here are… Read more »
Nonqualified Deferred Compensation Section 409A Compliance
David Fritz – Managing Partner A Chief Counsel Advice Memorandum of the IRS advises that a pre-vesting plan correction will not “save” a nonqualified deferral plan’s failure to comply with Section 409A of the Internal Revenue Code if benefits vest before the last day of the tax year in which the correction was made. Plan… Read more »
Estate Planning is Changing as a Result of the American Taxpayer Relief Act of 2012
Sataya Froemming- Client Service for Estate Markets With the enactment of the American Taxpayer Relief Act of 2012, balancing income and estate tax planning has become a focus of clients wanting to minimize overall tax exposure. Due to the flexibility that life insurance can present, it offers important aspects that shouldn’t be overlooked when creating… Read more »
Guaranteed Issue for BOLI / COLI and Nonqualified Deferred Compensation Plans
Lisa Oddis- BOLI / COLI Underwriting Guaranteed Issue underwriting for BOLI and COLI is a desirable type of insurance underwriting for banks and corporations. It is simple and does not put a burden on your key employees. Medical exams, lab work and Ecg’s are NOT required. There is a simple questionnaire which usually asks for… Read more »
BOLI/ COLI Case Study: Supports Continued Operations and Cash Need
Background: Prior to September 11, 2001, the airline industry went into a deep recession and many airlines were struggling. Cash flow was king and retaining key executives was paramount. This company implemented a nonqualified voluntary deferral plan to rectify the low government limits placed on 401k annual contributions. The participation was good as executives desired… Read more »
Hybrid BOLI: Beware of Treatment Under Basel III
NOTE: Pangburn publishes article confirming EBN’s views on Hybrid BOLI and Basel III. Read it HERE. R. David Fritz, Jr., CLU – Managing Partner and Co-Founder, Executive Benefits Network Most banks find their guidance regarding BOLI purchases from the OCC Bulletin 2004-56 and other Interagency Statements. The OCC Bulletin 2004-56 includes rules related to the… Read more »