How Executives Minimize the Retirement Tax Hit – Plan Ahead

Nikki Kook – Marketing and New Business Make a plan for your large retirement payouts, such as stock awards and deferred compensation, at least one to two years before leaving. In addition, take inventory of short-term cash flow needs in retirement, such as health and insurance needs and exercised stock-option taxes. Lastly, always review the… Read more »

Long-Term Care for Employed Spouses

Nikki Kook – Marketing and New Business You are the sole proprietor or partner of a business. Your spouse is a genuine employee of the business. A long-term care insurance plan can be set up and paid for by the business for the benefit of this employed spouse. In conjunction, the employed spouse’s spouse (AKA-… Read more »

The Many Benefits of Corporate and Bank Owned Life Insurance (COLI / BOLI)

Companies use Corporate and Bank Owned Life Insurance (COLI / BOLI) to help fund their employee benefit plans, increase earnings and shareholder value as well as recruit, reward and retain key officers and directors. Tell us something we do not already know, such as its uses in: Succession Planning Supporting the Employee’s Family and Community… Read more »

The Importance of Communication in Succession Planning

Lindsey M. Bessy, ALMI, CLTC, MBA, CLU, CASL- Financial Advisor We recently talked with a client who was facing a more common problem with succession planning than one may think. The Situation: The current President of the Bank was 5-10 years out from retirement. The board had discussions on the next generation of leadership and… Read more »

Putting the Freeze on Fees

Martha Petitjean – Executive Benefits Coordinator Executive Benefits Network provides fee-free access to client’s financial information, including illustrations and annual reports. This is not the case with most companies. As illustrated by Peter Katt & Company’s article, Quagmire of Life Insurance Policy Service*, access to information about financial products is not common in the industry…. Read more »

Split-Dollar Plans and Net Amount at Risk Considerations

Andrew Bainbridge- Client Service Specialist Employer owned split-dollar life insurance is a method of sharing both the obligations and benefits of life insurance with an employee while also providing an incentive for retention of key-employees. For the purposes of this article, assume the employer is the owner of the policy and is providing an interest… Read more »

Avoiding Inadvertent Taxable Gifts: Crummey Powers and ILIT Trustee Responsibilities

Avoiding Inadvertent Taxable Gifts: Crummey Powers and ILIT Trustee Responsibilities Lindsey M. Bessy, ALMI, CLTC, MBA, CLU, CASL- Financial Representative Many individuals follow an annual gifting strategy that involves making gifts to trusts, including Irrevocable Life Insurance Trusts (ILITs), and rely on beneficiary withdrawal powers to avoid taxable gifts by qualifying the transfers as annual… Read more »

Minimize FICA Taxes in Nonqualified Deferred Compensation Plans

Nikki Kook- Marketing and New Business Coordinator Minimize FICA Taxes in Nonqualified Deferred Compensation Plans Nonqualified Deferred Compensation (NQDC) plans have become increasingly popular along with the higher income tax rates. A thorough understanding of the FICA special timing rule for NQDC plans is critical in taking full advantage of a NQDC plan’s tax benefits…. Read more »

Succession Planning for Community Banks

In lieu of our Succession Planning for Community Banks WEBINAR on September 3 at 10am CDT, below is the whitepaper on the same topic. Please CONTACT US if you have questions or comments regarding succession planning for community banks. You may also download a print-friendly version of the paper HERE. Succession Planning for Banks and Businesses R…. Read more »

Why does my bank competition have higher Noninterest Income?

Jonathan Anderson- Director of Operations How often do you look at another bank’s noninterest income and wonder how they are continuously doing so well, regardless of any adversity in the industry? Noninterest income makes up a significant portion or most banks’ revenue. The composition of this revenue typically comes in the form of fees such… Read more »