With the passing of the COVID-19 relief bill, the White House is now focusing its efforts on the tax plan proposal, scheduled to be on the docket for summer of 2021. This tax package proposes many alterations to the current tax code…
Creating Tax-Free and RBC Efficient Equity Position
High reward, high risk? Insurance companies commonly attempt to increase portfolio yield by increasing allocations to higher risk investments. If the investment performs as desired the associated taxes reduce returns.
How to Minimize Your Risk-Based Capital Reserving
Minimizing your risk-based capital reserving maximizes the amount of capital invested in your portfolio. A common way in which insurance carriers reduce their risk-based capital reserving is by wrapping a portion of their on-balance sheet…
IRC 162(m) | Executive Pay Limits Included in Covid Stimulus Package
The American Rescue Plan Act of 2021 (commonly referred to as the $1.9 trillion coronavirus aid package) includes a provision that will double the number of the highest-paid executives whose compensation in excess of $1 million…
Legislative Update
COVID-19 Relief Bill Corrects Statutory Interest Rates for New Life Insurance Policies Consolidated Appropriations Act, 2021 included an update to Internal Revenue Code Section 7702 (definition of life insurance for tax purposes) interest rates…
NDCP | Best Ways to Pay for College
Are Nonqualified Deferred Compensation Plans the Best Way to Pay for College? In the Winter 2020 edition of Defined Contribution Insights (available here) Plan Sponsor Council of America (PSCA) published the first of a two-part…
Supplemental Employee Term Life Insurance
Today’s economic environment and health concerns have many thinking differently about their financial plans. Life insurance has taken on a renewed prominence at the forefront of American’s lives, while providers have been innovating…
Risks when Bundling Qualified and Nonqualified Plan Recordkeeping
A $55 million settlement after 13 years in litigation in the case of Tussey vs. ABB, illustrates the dangers of bundling qualified and non-qualified plans with the same recordkeeper. In an effort to maximize cost efficiency,…
Use Deferred Compensation Plans in Place of Salary Reductions
The COVID-19 pandemic has had profound impacts on the day to day business of most American companies. Shelter in place orders and social distancing recommendations, while necessary, also mean that customers are less frequent…
Deferral Contribution Planning
Consider the Impact of COVID-19 on Higher 401(k) Refunds The economic impact of the COVID-19 pandemic has likely reduced 401(k) contributions this year. And as a result, the ERISA required nondiscrimination testing that occurs…