EXECUTIVE BENEFIT PLANNING

Ask yourself…

What would the impact on your business be if a key employee started his/her own business or went to work for a competitor?

Are you making effective use of business dollars to achieve your personal financial security objectives?

 

Objective Issues to Consider
Reward and Retain Key Employees
  • What is the value of your key employees to your business success?
  • Do you have any selective benefit programs to assure the retention and loyalty of your key employees?
  • What types of benefits are important to the people who are critical to your business?
  • Are your current benefit plans meeting these expectations?
Use Business Dollars to Satisfy the Owner’s Personal Financial Needs
  • If you had died or become
Read More »

WHAT IS AN ANNUITY?

In planning for financial security in retirement, an annuity cansatisfy two basic objectives:

1. To accumulate retirement assets on a tax-deferred basis: If you’re alreadycontributing the maximum to IRAs and any employer-sponsored retirement plans andneed to save more for retirement, a deferred annuity may be the answer to yourretirement savings need.

2. To convert retirement assets into an income that you cannot outlive: On theother hand, if you’re near or at retirement, an immediate income annuity can be used toconvert existing retirement assets into a lifetime income.

An annuity is a long-term savings plan that can be used to accumulate assets on a tax-deferred basis for retirement and/or to convert retirement assets into a

Read More »

REVERSE DISCRIMINATION OF QUALIFIED RETIREMENT PLANS

Did You Know That… 

Qualified Retirement Plans Tend to Discriminate AGAINST the Highly Compensated? 

The restrictions placed on qualified retirement plans strictly limit the size of the benefits that can be accrued for highly-compensated employees. When compared to the benefits provided to lower-paid employees, these limitations can produce a “reverse discrimination” effect that results in qualified retirement plans replacing an inadequate percentage of an owner’s or key employee’s pre-retirement income. 

Eligible compensation that can be considered in applying these benefit or contribution limitations is capped at $275,000 in 2018 (as adjusted for inflation). 

There is, however, a solution to the inadequacy of qualified retirement plan benefits for owners and key employees…a selective executive benefit plan can be used to counter …

Read More »