Common Oversights in Split-Dollar Plans

AALU “Split-dollar arrangements (SDAs) can provide insurance planing flexibility in both business and private settings. Business SDAs generally are between a company and an insured employee or owner (or commonly his or her ILIT if the insured wishes to keep the proceeds out of his or her estate). A company may incorporate a SDA into… Read more »

Net Investment Income Tax – A New Playing Field

R. David Fritz, Jr., CLU- Managing Partner, Founder With the advent of the new net investment income tax (“NIIT”), there needs to be a change in thinking related to income tax planning arrangements and investments. The new net investment income tax (“NIIT”) imposes an additional 3.8% tax on passive income received by individuals, trusts, and… Read more »

Life Insurance as a Corporate Financing Tool

R. David Fritz, Jr., CLU Much of my experience with life insurance has centered on its use in business situations. In the business context, life insurance is traditionally associated with key person coverage, debt replacement and employee benefits. With the current economy, a new role emerged for life insurance—a tool in corporate finance. Corporate finance… Read more »

Banking Compensation and Nonqualified Benefit Plan Study

Executive Benefits Network is pleased to present our first benefit plan study. This study provides useful information to the banking community and reflects common market practices pertaining to Executive Benefit Plans. Using Executive Benefits Network’s database of 111 current clients, focused mainly on Banks in the Midwest region, Executive Benefits Network compiled, analyzed and organized… Read more »

Avoiding Inadvertent Taxable Gifts: Crummey Powers and Annual Exclusion Gifts to Trusts

R. David Fritz, Jr., CLU- Managing Partner and Founder, Executive Benefits Network 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 exclusion gifts. For gifts to trusts to qualify… Read more »

Reminder: In-Service Distributions for Benefit Plans

Lisa A. Oddis- Case Implementation Specialist An In-service Distribution is an option in some Nonqualified Plans. It allows participants to elect to take a distribution from their account balance during working years. For participants, this can be a valuable tool for future expense funding such as children’s education, wedding funding, that retirement house on a… Read more »

ICOLI: Offset Benefit Costs while Improving the Bottom Line

Lindsey M. Bessy, ALMI, CLTC, MBA- Financial Advisor Insurance Company Owned Life Insurance (ICOLI) is life insurance owned by the insurance company and issued on the lives of directors and select employees and is usually funded with a single premium deposit. ICOLI earnings are based upon a diversified investment portfolio managed by the life insurance… Read more »