Private or personal pensions: leveraged split dollar increases retirement capital for professionals
Article Abstract:
Professionals with personal service corporations have a difficult time accumulating sufficient retirement capital because of compliance requirements for qualified and non-qualified compensation plans. Therefore, many professionals choose to invest their retirement funds on an after-tax basis. However, leveraged split dollar life insurance, in which the corporation and professional share premium costs, can be an efficient substitute or supplement for traditional retirement plans. Corporations, however, must meet the IRC section 264(a)(4) $50,000 per life loan limit for life insurance premiums.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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Drafting and administering employee welfare benefit plans governed by ERISA
Article Abstract:
Employee welfare benefit plans should be made to conform with federally mandated criteria to ensure the plans are governed by ERISA rather than state regulations. Policy designers should consult 20 U.S.C.A section 1003, clearly define all individuals and their tasks as required under ERISA and eliminate any profit-making qualities. Plan administrators must also follow ERISA rules to prove that the plan complies with applicable ERISA criteria.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
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