Tax Exempt Entities

Tax Exempt Entities have the same key talent retention and attraction needs as any other company. However, regulations specific to Tax Exempt Entities can make traditional benefits and compensation difficult and costly to offer. The Tax Cuts and Jobs Act of 2017 imposed an excise tax on tax exempt organizations for any compensation paid to an executive in excess of $1,000,000, leaving many tax-exempt organizations with a new and unfunded tax liability.

In addition to compensation paid in any one year, the excise tax is imposed on payments from both qualified and nonqualified plans, which normally all occur in a single year. Prospects for a huge tax bill in the same year an organization loses a key employee are untenable, so MBS Financial has devised a method of providing high quality retirement benefits to executives through split dollar life insurance. We have helped tax-exempt entities across the United States structure programs which benefit both the executives and the organization.

In addition to split dollar services, we offer wholistic executive benefit plan reviews with an emphasis on finding funding efficiencies between plans. Executive individual life insurance and disability plans complement traditional benefit plans to grant executives the same access to coverage as the rest of the company. Our knowledge of these marketplaces make MBS Financial your premier partner in attracting, retaining and incenting your key people.

Let us design a customized solution to fit your needs.