At the end of 2015, Congress passed a bipartisan act called the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act). The bill extends some tax breaks for individuals and businesses which were due to expire at the end of 2015. Some of the previously set to expire provisions were made permanent by the… Read more »
An Unintended Consequence of Mergers and Acquisitions
A 2015 Gallup Poll highlights an unintended consequence of bank mergers and acquisitions: customer loss. The poll studies the impact of mergers and acquisitions and how they are affected by the concept of customer engagement. Customer Engagement, as defined by Gallup’s research, is based upon the answer to three key questions. Does the company always… Read more »
Nonqualified Deferred Compensation Section 409A Compliance
David Fritz – Managing Partner A Chief Counsel Advice Memorandum of the IRS advises that a pre-vesting plan correction will not “save” a nonqualified deferral plan’s failure to comply with Section 409A of the Internal Revenue Code if benefits vest before the last day of the tax year in which the correction was made. Plan… Read more »
Estate Planning is Changing as a Result of the American Taxpayer Relief Act of 2012
Sataya Froemming- Client Service for Estate Markets With the enactment of the American Taxpayer Relief Act of 2012, balancing income and estate tax planning has become a focus of clients wanting to minimize overall tax exposure. Due to the flexibility that life insurance can present, it offers important aspects that shouldn’t be overlooked when creating… Read more »
Guaranteed Issue for BOLI / COLI and Nonqualified Deferred Compensation Plans
Lisa Oddis- BOLI / COLI Underwriting Guaranteed Issue underwriting for BOLI and COLI is a desirable type of insurance underwriting for banks and corporations. It is simple and does not put a burden on your key employees. Medical exams, lab work and Ecg’s are NOT required. There is a simple questionnaire which usually asks for… Read more »
BOLI/ COLI Case Study: Supports Continued Operations and Cash Need
Background: Prior to September 11, 2001, the airline industry went into a deep recession and many airlines were struggling. Cash flow was king and retaining key executives was paramount. This company implemented a nonqualified voluntary deferral plan to rectify the low government limits placed on 401k annual contributions. The participation was good as executives desired… Read more »
Hybrid BOLI: Beware of Treatment Under Basel III
NOTE: Pangburn publishes article confirming EBN’s views on Hybrid BOLI and Basel III. Read it HERE. R. David Fritz, Jr., CLU – Managing Partner and Co-Founder, Executive Benefits Network Most banks find their guidance regarding BOLI purchases from the OCC Bulletin 2004-56 and other Interagency Statements. The OCC Bulletin 2004-56 includes rules related to the… Read more »
Why Smaller Banks Are Buying Employee Life Insurance (BOLI)
Original article from American Banker by Chris Cumming June 25, 2014 Smaller banks are slowly adopting bank-owned life insurance as a way to counter shrinking loan margins and diminished returns on other investments. Community banks have traditionally been reluctant to buy life insurance on key employees, a common practice among big banks. But since the… Read more »
IRS Announces New Program to Audit 409A Compliance
R. David Fritz, Jr., CLU IRS Announces New Program to Audit 409A Compliance Last month, the Internal Revenue Service announced that a Compliance Initiative Project (CIP) was underway involving a compliance audit for Section 409A plans. The CIP will initially focus on fifty large companies; however, this foreshadows a much broader Section 409A initiative enforcement…. Read more »
Planning with Non-Profit Organizations
R. David Fritz, Jr., CLU- Managing Partner Many of you either sit on the board of a non-profit or have been asked to assist in determining compensation matters for key individuals within a non-profit organization. Planning for non-profit organizations is challenging compared to planning for executives within a for-profit organization. Let’s explore the key differences…. Read more »