Super Roth™
A Super Roth is an executive owned, company sponsored benefit that allows executives to contribute unlimited after-tax dollars. Dollars contributed will grow on an income-tax-free basis and distributions can be made without tax. The plan can also provide asset protection for plan participants depending upon state of residence.
Split-Dollar Plan
A split-dollar plan is a strategy whereby an employer obtains a life insurance policy on an individual executive. The employer and executive agree on how to split the premium payments, cash value and death benefits. The plans can be used as part of executive compensation packages to help retain key employees. A typical split-dollar plan may be structured so that—upon the death of the executive—the company is reimbursed for premium payments, and death benefit proceeds are paid to the executive’s beneficiaries.
Loan Regime Split-Dollar Plan
A loan regime split-dollar plan is a type of split-dollar life insurance arrangement where an employer loans the premiums for a life insurance policy to an executive. A key benefit of this arrangement is that the executive can benefit from life insurance coverage without bearing the full cost of the premiums. The employer and executive enter into a loan agreement and the executive is responsible for paying interest on the loan, which may be lower than the cost of paying the premiums directly. The loan is collateralized by the policy’s cash value and death benefit, and the loan can be repaid using policy cash value, other funds or death benefit proceeds.
Controlled Bonus Plan (CBP)
A controlled bonus plan is an attractive, off-balance-sheet option for companies to retain and reward highly valued executives. A CBP can provide flexible payout options and asset protection for executives, while controlling the company’s deductible contributions with a vesting schedule.
Estate Preservation Plan (EPP)
An estate preservation plan is a company-paid benefit that creates an asset outside the executive’s estate. The tax-free death benefit can be used to offset the estate taxes for the executive’s beneficiary/ies. The executive may be subject to imputed income tax (i.e., economic benefit cost).
Executive Disability Income (EDI)
An executive disability income plan provides a portable, individually owned disability benefit that replaces up to 75% of an executive’s total income. Sources of income can include salary, bonus, incentive compensation, commissions, and equity forms of compensation. In the event an exec suffers a disability and is unable to work, the EDI plan typically picks up where the short-term disability ends.
Executive Long-Term Care Plan
An executive long-term care plan is a benefit that ensures the costs associated with assisted living expenses, including a caregiver, are provided as reimbursable expenses from the LTC policy. Benefits are received income-tax-free with a guaranteed death benefit and return of premium if the LTC plan is not used. Premium payments can be made by either the company or the individual, and the policy is individually owned. Unlike executive disability income coverage, which replaces up to 75% of total income, executive long-term care, benefits are paid if two daily living activities are lost.
Domestic Captive Insurance Structures (DCIS)
This corporate planning and consulting initiative involves determining the business risks of a company and exploring the insurability of those risks in a cost and tax effective way. With our help, the business determines its scope of risks and explores the insurability of those risks in a tax-efficient way. We take into consideration the company’s structure, size and current financial position from a cash-flow and P&L perspective to build a financial model that is used to determine annual premium.
Short-Term Deferred Compensation Plans
A short-term deferred compensation plan is not subject to IRC 409A. This plan does allow highly compensated employees that are beyond the highest 15% of wage earnings and non-highly compensated employees to defer income above and beyond 401(k) plan limits. All dollars deferred must be paid out no longer than 10 years from the time of deferral.