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New legislation


Guest wmacdonald

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Guest wmacdonald

As many of you know, the legislation is intending to make assets held in a rabbi trust currently taxable to executives. What are people seeing as the alternative? Also, the new "executive loans" will have a major impact on split dollar life insurance, what's everyone doing?

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What "executive loans" are you referring to?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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Guest ndt123

There are two proposals: The Thomas bill in the house, and the Senate Finance bill that will be considered in September.

The Thomas bill treats any deferred compensation by owners, executives or officers as compensation in certain circumstances. The senate finance bill directs the Treasury to issue regulations dealing with many aspects of deferred comp, including ways to accelerate distributions to avoid bankruptcy issues.

If the Thomas bill goes through, many current arrangements will need to be modified to eliminate rabbi truts, haircuts, hardships...

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Guest wmacdonald

Ken Kies who runs our Washington Group (also represents AALU) did a on line call this week with our clients and advisors. You will be able to download his comments and the many questions in a few days. You can download them from www.clarkbardes.com/crg. His comments regarding the bill signed this week, was that any premium payments to a split dollar policy for executives of publicly traded companies will fall under the executive loan area.

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