Deferred Compensation Plan Asset / Liability Reconciliation Managing Profit and Loss (P&L) – Not an Exact Science

June 2018 Deferred Compensation Plans can be designed and funded to have little to no P&L impact.  However, even the most well thought out plans can put a company in a negative P&L position without proper management and oversight.  Having the appropriate processes in place is paramount for managing an “on balance” plan. It is […]

Economic Benefit of Life Insurance Under Final Split Dollar Regulations

May 9, 2018 The appropriate method for valuing company-paid life insurance benefits under final split dollar regulations is currently understood to be measured by Table 2001 or an insurance carrier’s published alternative term rates, which meet the specifications indicated in Notice 2002-8.  Below is the basis for this industry practice: Final split dollar regulations provide […]

MC Briefcase: Best Allocation of Corporate Tax Savings

March 19, 2018 US corporations will be receiving a significant injection of cash by way of tax savings due to the recent Trump Tax legislation.  As we are all aware, corporate tax rates have been dropped to 21%, the lowest corporate tax rate in the history of the United States since the early 1940’s.  It […]

MC Briefcase: Impact of the Tax Cuts and Jobs Act on Life Insurance Product Pricing

February 2018 The Tax Cuts and Jobs Act (“Tax Law”), which became effective on January 1, 2018, includes several provisions that impact life insurance companies and the products they offer. The Joint Committee on Taxation estimates the 10-year cost for the industry to be $23 billion. While a lower corporate tax rate (21% under the Tax Law, […]

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