Key findings from the 5th edition of the MBS Recordkeeper Survey of the Deferred Compensation Plan Market are included below. The 13 largest recordkeepers in the nonqualified plan arena, representing approximately 85% of all nonqualified…
Read More 2020 MBS Nonqualified Deferred Compensation Plan Recordkeeper Survey
Low Interest Rate Environment Driving BOLI Sales Entering the twelfth year of historically low interest rates, and with the Federal Reserve indicating rates will stay low for at least the next two years, BOLI has been a popular alternative…
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?
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…
Read More Understanding Corporate Owned Life Insurance (COLI)
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…
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”)…
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…
Read More Impact Of Final Regulations On Reportable Policy Sales For COLI/BOLI Policies
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…
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.
Read More New Strategy To Protect Deferred Compensation Balances From Bankruptcy
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…