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 »

Are Nonqualified Defined Benefit Plans (SERPs) Still Relevant?

Dylan Habeeb – Presentation and Case Design Specialist The current problem facing Defined Benefit Plans (both Qualified and Nonqualified) in the corporate market: It is estimated that 93% of Qualified Defined Benefit Plans are underfunded. Companies are getting rid of and amending Qualified Defined Benefit Plans due to the low interest rate environment and having… Read more »

Using an Association Endorsed Vendor – Is it in the Best Interest of the Bank?

Endorsed vendor status is used to position some firms to the front of the line with banks looking to purchase products or services. Is this in the best interest of the bank? Most banking associations have an endorsed vendor program. This entails a process of review by the association board and a selection process, which… Read more »

E-Filing Now Available for Top Hat Plan Statements

On September 30, 2014, the Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) published a proposed regulation that would require electronic filing of “top hat” plan statements. A top hat plan is a nonqualified plan that is unfunded, covers a select group of management and/or highly compensated employees and allows the participant to defer income… 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 »

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 »

IRS Announces New Program to Audit 409A Compliance

R. David Fritz, Jr., CLU IRS Announces New Program to Audit 409A Compliance Last month, the Internal Revenue Service announced that a Compliance Initiative Project (CIP) was underway involving a compliance audit for Section 409A plans. The CIP will initially focus on fifty large companies; however, this foreshadows a much broader Section 409A initiative enforcement…. Read more »

The Pickle of Term vs. Perm

Nikki Kook- Marketing and New Business Coordinator Longevity and insurance. What do these have in common? Although technological and medical advances are wonderful and give us more time with our loved ones, it is leaving many people financially unstable after retirement. In addition, the average retirement age is becoming later and later, and many people’s… Read more »

Planning with Non-Profit Organizations

R. David Fritz, Jr., CLU- Managing Partner Many of you either sit on the board of a non-profit or have been asked to assist in determining compensation matters for key individuals within a non-profit organization. Planning for non-profit organizations is challenging compared to planning for executives within a for-profit organization. Let’s explore the key differences…. Read more »