Sentences with phrase «dollar arrangements»
Usually, parties to a split dollar arrangement are a closely held or family business and a key employee.
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Usually, parties to a split dollar arrangement are a closely held or family business and a key employee.
Split dollar arrangements usually take one of two forms.
Things get a bit more uncertain for split dollar arrangements involving partnerships and LLCs because the IRS rules are very unclear about how to classify the life insurance benefits.
Both the owner and the non-owner are required to fully and consistently account for all amounts under a split dollar arrangement under either the economic benefit regime or the loan regime.
Split dollar arrangements have also come into wide use in gift and estate planning.
Things get a bit more uncertain for split dollar arrangements involving partnerships and LLCs because the IRS rules are very unclear about how to classify the life insurance benefits.
o. Level premium whole life insurance is often the preferred type of insurance for split dollar arrangements.
The loan regime generally governs the taxation of collateral assignment split dollar arrangements (e.g., arrangements in which the employee is designated as the owner of the contract and the employer (non-owner) pays all or a portion of the premiums).
This regime generally governs the taxation of compensatory arrangements in which the employee is not the owner of the contract (e.g., endorsement split dollar arrangements).
It may also be used in split dollar arrangements, executive bonus plans, qualified pension plans and nonqualified deferred compensation plans.
In a typical split dollar arrangement, the employer funds all or part of the cost of providing an employee with life insurance protection and then recoups the cost by sharing in the insurance proceeds at the employee's death.
With the macho posturing out of the way, it makes it easier to appreciate his powerful voice and million - dollar arrangements.
Business owners who might not otherwise be able to afford life insurance might benefit from a split - dollar arrangement.
A closely held business (hereafter «employer»), can pay the entire premium pursuant to a split dollar arrangement.
Lawrence Russell and Company has no relationships with any broker that involves any kind of direct or indirect compensation, commission, benefit, or soft - dollar arrangement for suggesting that a client use any particular broker.
The IRS recently has announced changes in the taxation of split - dollar plans, and these changes cast doubt on the future utility of some of these arrangements and create a risk of potentially disastrous tax consequences for participants in certain existing split - dollar arrangements.
This reliance on term costs to value the taxable income to the employee (and the gift to the ILIT) has been the reason split - dollar arrangements have been so attractive.
These employment - related split - dollar arrangements were sometimes used as a method of deferred compensation and sometimes as an estate - planning technique for the insured employee.
A closely held business (hereafter «employer»), can pay the entire premium pursuant to a split dollar arrangement.
Like many non-qualified plans, split dollar arrangements can be a very useful tool for employers looking to provide additional benefits to key employees (See also: How Non Qualified Deferred Compensation Plans Work.)
The regulations outlined two different acceptable split - dollar arrangements: economic benefit and loan.
With the split dollar arrangement, the premium payer, generally the insured's company, is entitled to the cash value or an amount equal to the cash value from the death proceeds.