Bank-Owned Life Insurance How do sophisticated financial institutions finance the cost of their employee benefits while boosting the earnings on their investment portfolio and creating an immediate rise in earnings per share?
Understanding Corporate Owned Life Insurance (COLI)
EXECUTIVE SUMMARY Many companies offer valued executives non-qualified benefits programs such as deferred compensation. While these programs are not eligible for funding through secured qualified plans, companies can…
Corporate Owned Life Insurance (COLI) – Overview
WHAT IS COLI? COLI is a funding strategy that has been broadly utilized by public and private companies, financial institutions, banks and insurance companies as a means of financing executive benefit obligations. COLI offers death benefit…
Implications of the Treasury Department’s Final Regulations on Reportable Policy Sales for 1035 Exchanges Made by Businesses
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…
New Excise Tax Levied on Non-Profit Organizations
The Problem In January of 2019, the IRS issued Notice 2019-09 to clarify changes made to Section 4960 of the Internal Revenue Code (IRC) by the Tax Cuts and Jobs Act (TCJA). Within this notice, the IRS levies a 21% excise tax on…
New Strategy to Protect Deferred Compensation Balances from Bankruptcy
The current economic environment caused by the COVID-19 pandemic has taken a significant toll on corporate revenues and balance sheets, leading much of the public to be concerned about the futures of the companies for which they work.
Two Commonly Asked Questions Regarding Hardship Withdrawals From Deferred Compensation Plans
The uncertainty of the coronavirus has wreaked havoc on markets, causing unprecedented volatility and financial strains to all Americans. This environment may lead to our Plan Sponsors fielding two commonly asked questions from…
Hardship Withdrawals No Longer Limit Non-Qualified Plan Deferrals
Hardship Withdrawals No Longer Limit Non-Qualified Plan Deferrals Pre-2019 Rule (Old Rule) Up until this year, before the Bipartisan Budget Act of 2018 was signed into law, a participant in a non-qualified deferred compensation plan was…
Non-Qualified Deferred Compensation Plans – Draft Carefully
The WRMarketplace is created exclusively for AALU Members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides…