What it takes to Build & Protect a Successful Business?

Non-qualified Deferred Compensation (NQDC) Plans are designed to provide additional retirement benefits for key employees above and beyond a pension & profit sharing plans. You can choose which employees are to be covered, the benefits to be provided, and whether the benefit is subject to a vesting schedule - used by large, publicly owned corporations to reward and attract employees with "golden handcuffs."

Cost-effective and tax-efficient way to provide benefits using life insurance. Split Dollar gets its name because it involves splitting the benefits of a life insurance policy between you and your key employee. These plans can be structured in different ways, depending upon the type of incentive you are trying to provide.  In addition, the death proceeds received by their beneficiary are income tax free.

If you, partners, or employees become disabled before reaching retirement age, each of you may not only lose your ability to earn an income, but also the opportunity to accumulate additional funds for retirement. We can help replace an amount equal to the retirement plan contributions (both the employee’s and the business’s contributions) that would have been made to an eligible defined contribution plan otherwise. 

This Section 162 Bonus Plan is a type of incentive plan whereby the business provides an executive with funds that are used to purchase a life insurance owned by the employee. You can choose which employees receive this incentive. The employee owns the policy and chooses the beneficiary. There are optional arrangements that can restrict the employee’s access to the cash values until retirement. The bonus amount you pay is fully tax deductible to the company, and taxed as ordinary income to the employee. 

Long-term disability income insurance (LTD) provides monthly benefits to help you as a business owner and you employees maintain their standard of living while unable to work due to illness or injury. As a business owner, you have the option of giving your employees the opportunity for supplemental benefit on either a voluntary or employer-paid basis - augments existing coverage and helps to reduce the gap between benefits and your employees’ pre disability income. benefit

package. 

 Employee Stock Ownership Plans (ESOPs) are specific type of qualified retirement plan that invests primarily in employer securities (stock). As a qualified plan, an ESOP is subject to all the same limits, rules and regulations as other qualified retirement plans. Discrimination testing, tax reporting and required employee communication must all be met or undertaken.  The value of the shares contributed to the plan must be determined, and the employees must be given a ready market for their shares upon termination from an ESOP.

A business overhead expense (BOE) disability insurance policy reimburses business owners for existing overhead expenses incurred while they are disabled, keeping the company up and running while the owner recovers. Regular expenses that could be covered under a BOE policy include employee salaries, rent, leases, and utilities to name a few. Business overhead expense premiums are generally tax deductible as a business expense.

In a Cross Purchase Buy-Sell Plan each business owner purchases a life insurance policy covering the life of every other owner. Each business owner pays the premiums and is the beneficiary of the policies that he/she is purchasing. If an owner dies, the surviving owners use the life insurance death benefit to purchase the deceased owner’s interest. If an owner becomes disabled, the Buy-Sell contract provides an agreed upon payment to the disabled owner for his or her interest in the business.

In an Entity/Stock Redemption Buy-Sell Plan the business purchases a life or disability insurance policy covering each owner. The business pays the policy premiums and is the beneficiary on each policy. If one of the owners dies, the death benefit from his/her policy is paid to the business to purchase that owner’s interest in the company. If an owner becomes disabled, the Buy-Sell Agreement provides an agreed-upon payment to the disabled owner for his or her interest in the business.