Projecting Your Retirement Income? Be Thorough
A conversation about SERPs with ‘Jim,’ CEO of a $1.5 billion credit union. For over a decade, I’ve talked with credit union leaders about their financial futures, retirement and how […]
What You See Might Not Be What You Get With Certain Retirement Plans
Understanding the hidden variables in IUL SERPs and how sequence of returns risk can distort projected retirement income. When planning for retirement, it’s easy to focus on how much you’re […]
21% Tax on 457(f) and Split Dollar Plans
How the 21% excise tax impacts 457(f) plans and split dollar arrangements and what credit unions should evaluate. Under the Tax Cuts and Jobs Act (the “Act”), an excise tax […]
The Impact of a Compensation Philosophy in The Credit Union Industry
How a clear compensation philosophy shapes leadership behavior, strengthens culture, and influences industry-wide standards. In the credit union industry, a well-crafted executive compensation philosophy shapes leadership behavior, reinforces organizational culture, […]
Choosing Between Limited Recourse, Full Recourse, and Non-Recourse Notes in Split Dollar Programs
With the recent upheavals in the financial markets, the dramatic rise in long-term interest rates, and reduction in caps for Indexed Universal Life policies, we are seeing increased focus on […]
Replacing an Existing 457(f) Agreement with a New Split Dollar Agreement
A 457(f) arrangement is a type of non-qualified deferred compensation plan, and taxation of that deferred compensation occurs at the first point when there is no substantial risk of forfeiture […]
Collateral Assignment Split Dollar Agreements
What credit union boards need to understand about loan structure, vesting, remedies, and risk in collateral assignment SERP designs. A Credit Union may choose to offer a split dollar agreement […]
Purchasing an existing Split Dollar Plan SERP loan from another credit union on a newly hired executive – FAQ
What credit union leaders should evaluate before acquiring an executive’s existing split dollar SERP loan. You just hired an executive that had a Collateral Assignment Split Dollar Plan SERP at […]
Split Dollar SERP: The Preferred Choice for Non-Profit Executives
Why many tax-exempt organizations are shifting from 457(f) plans to split dollar SERPs to manage tax exposure, compliance risk, and retention. For many years, the go-to form of supplemental retirement […]
457(f) Plan Overview
Key rules every executive should understand before structuring or evaluating a 457(f) plan. Background and General Rules Section 457(f) of the Internal Revenue Code (“IRC”) governs an “ineligible” deferred compensation […]