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.

 

SPONSORED REPORT

Building client loyalty with payroll services

In this report, CPA experts detail their tactics for performing successful payroll services, how to mitigate risk in the process, and the impact payroll can have as a value-added service.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.