MBS Financial’s 7th survey of the nonqualified deferred compensation plan market is the most comprehensive survey done of the NQDCP marketplace – encompassing over 12,000 plans administered by the 20 largest NQDCP recordkeepers….
Mind the (Income Protection) Gap
Similar to the way a nonqualified deferred compensation plan provides an opportunity for executives to restore retirement savings rates restricted by IRS limits imposed on 401(k) plans, Supplemental Disability Income Plans can restore the income replacement rates limited for higher earners in Group Long Term Disability (LTD) Plans…
MBS Financial Certified as Women-Owned Business
Mullin Barens Sanford Financial proudly announces certification as a women-owned business.
Basic Accounting for ICOLI
ICOLI can provide improvements to your investment returns, but how do you handle this asset on your books? ICOLI Accounting ICOLI accounting is straight forward. GAAP Reporting ICOLI surrender value is reported as an “Other Asset” …
Moving Out of State? Don’t Forget about the Source Tax
One well known, yet unexpected result of the COVID-19 pandemic was the mass exodus of individuals out of city centers. For many, that exodus extended to moving out of state, particularly for those seeking to move from high to low income tax states.
How REITs Can Hedge an Employee Benefit
Informally funding a DCP without Triggering Distribution Requirements
In order for Real Estate Investment Trusts (“REITS”) to maintain their designated tax treatment status, they must meet the annual REIT testing requirements. REITS are required to distribute at least 90% of taxable income in the form of dividend payments to their shareholders. Income realized through the growth of mutual funds – even to pay an employee benefit – must be included in the taxable income calculation, causing significant shortfalls when plan balances rise.
The Fundamentals of Insurance Company Owned Life Insurance (“ICOLI”)
According to statutory filings, North American insurance companies own more than thirty-billion dollars of institutional life insurance. This Article explores the basic attributes of ICOLI, the applicable tax and regulatory structure, the available investments, the process to acquire ICOLI and how insurance companies deploy this strategy to outpace yield earned on traditional investments.
How to Battle the Great Resignation with Deferred Compensation Plans
Executive Summary
This article explores how a company can use a deferred compensation plan (“DCP”) as a tool to overcome the executive recruitment and retention challenges produced by “The Great Resignation”.
Are Deferred Compensation Plans (DCPs) an Executive Perk?
No, DCPs restore lost savings opportunities and fit in an egalitarian culture.
Many companies say yes. Here are the reasons why:
Issue: Highly compensated employees (HCEs) are in fact discriminated against by 401(k) contribution limits and testing. In 2022, an HCE is defined by the IRS as having total compensation of $135k or more (IRC Section 415).
Record Group Insurance Death Claims in 2021
Last year, group life insurance companies experienced a record number of death claims. Two recent reports include:
MetLife’s adjusted quarterly earnings in the U.S. group-benefits unit plummeted 95% to $20 million, from $383 million the year-earlier with increased deaths of younger people (i.e., those under age 65) with employer-sponsored benefits. MetLife paid out $1.06 for each $1 of group-life-insurance premium collected.