boma_ex1


Exhibit 1: Sample SERP Swap
  1. Participant forfeits specified excess benefits.
  2. Company pays premiums into a survivorship life insurance contract owned by an irrevocable trust.
  3. Participant contributes, via gifts in trust, part of the annual premium equal to the “economic benefit” of the insurance coverage.
  4. Participant pays gift tax (and GST tax, if applicable) on the economic benefit contributions. Tax may be avoided by using available exemptions.
  5. Company recovers its premium outlay before or at death. Split-dollar agreement terminates.
  6. Life insurance trust receives death proceeds free of income and estate taxes.

 

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QUIZ

8 sentences to help you master subject-verb agreement

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.