On October 31, the Treasury Department released its final regulations on Reportable Policy Sales (RPS). In addition to clarifying the tax implications for company-owned life insurance (“COLI”) and bank-owned life insurance (“BOLI”)…
Impact of Final Regulations on Reportable Policy Sales for COLI/BOLI Policies
Background The Tax Cuts and Jobs Act of 2017 (the “TCJA”) modified the prior-law exemptions of the Transfer for Value Rules (“TFV Rules”) to include new Reportable Policy Sale (“RPS”) requirements that apply to all transfers…
Funding & Benefit Security
Events during the past two decades have increased executives’ focus on the security of their non-qualified arrangements. This heightened awareness of benefit security comes at a time when companies, shareholders and the media are focused…
Weighing the Options for Informally Funding Non-Qualified Benefits
Informally funding deferred compensation programs can offer advantages to both participants and companies. The practice can help support a company’s promise to pay future benefits to plan participants while minimizing income statement volatility.