COLI/BOLI

Information for Clients: Impact of Final Regulations on Reportable Policy Sales in the COLI/BOLI Marketplace

Topics: COLI/BOLI

The Tax Cuts and Jobs Act of 2017 (the “TCJA”) modified the prior-law exemptions of the Transfer for Value Rules (“TFV Rules”) to include new Reportable Policy Sale (“RPS”) requirements that apply to all transfers for valuable consideration. This rulemaking has important implications for the company-owned life insurance (“COLI”) and bank-owned life insurance (“BOLI”) marketplaces…

Implications of the Treasury Department’s Final Regulations on Reportable Policy Sales for 1035 Exchanges Made by Businesses

Topics: COLI/BOLI

On October 31, the Treasury Department released its final regulations on Reportable Policy Sales (RPS) final rule. In addition to clarifying the tax implications for company-owned life insurance (“COLI”) and bank-owned life insurance (“BOLI”) transferred in ordinary course transactions, the rule also cemented the Treasury Department’s position on how the requirements will apply with respect…

IRS Ruling on ILITs, Helping Aging Clients, Trustee Duties, IRS Expands EPCRS Program, and More

Topics: COLI/BOLI, Estate planning, NQDC, Tax reform, Trusts

May 23, 2019 WRMarketplace: The IRS Expands EPCRS Self-Correction Program To Cover Plan Loan Failures and Certain Other Operational and Plan Document Failures The IRS’s recently issued 2019 Employee Plans Compliance Resolution System (EPCRS) update makes common plan failures simpler and less costly to correct. Particularly for smaller plans that may have found the new…

Retirement Income Strategies, What Boomers Need, Future of Insurance Regulation, and More

Topics: COLI/BOLI, IRS, NQDC, Regulation, Retirement security

May 09, 2019 Assets Under Management The Flooring Approach: Creating a Baseline for Retirement Income The flooring approach to retirement income involves building a baseline income to ensure mandatory expenses are met annually, while still having upside potential in your retirement portfolio for non-essential expenses. In this Forbes piece, Jamie Hopkins discusses the fundamentals of…

COLI/BOLI Alert; Amb Action w/ Rep. Gottheimer (D-NJ); NJ fiduciary proposal; How SECURE Act and RESA could help your business?

Topics: Advisor standard of conduct, COLI/BOLI, Congress, Regulation, Retirement security

April 19, 2019 This Week in Washington COLI/BOLI Alert: Proposed Regulation Responsive to Life Insurance Concerns The Tax Cuts and Jobs Act of 2017 included language that modified the Transfer for Value rules related to certain life insurance contracts by subjecting them to new reportable policy sale requirements. This new provision has a narrow, but…

IRS Issues New 162(m) Rules Related to Grandfathered Benefits under Deferred Compensation Plans.

Topics: 162(m), COLI/BOLI, Congress, NQDC, Tax reform

Changes to 162(m) made by the Tax Act expand the $1 million deduction limit for covered employees at public companies. NQDC amounts accrued as of November 2, 2017 can escape these expanded deduction limits if the NQDC amounts meet certain grandfather requirements to remain covered by the pre-Tax Act 162(m) rules (“old 162(m)”). The Notice…

Recent Trends in Litigation over Director Compensation Highlight Risks and Suggest Actions to Mitigate those Risks

Topics: COLI/BOLI, Congress, NQDC, Tax reform

Decisions about levels of director compensation often do not receive the protection of the business judgment rule because directors are usually interested in decisions about their own compensation levels. Under Delaware case law, however, stockholders face significant legal barriers in challenging these director compensation decisions if the stockholders previously approved the director compensation levels. These…

In This Week’s Tax News – 18.04.09

Topics: COLI/BOLI, Congress, Tax reform

Monday, 9 April 2018 COLI/BOLI Marketplace Potential Impact of the Transfer for Value Provision in the Tax Cuts and Jobs Act of 2017 By Armstrong Robinson H.R. 1 included language modifying the Transfer for Value rules related to certain life insurance contracts subject to new reportable policy sale requirements. That language carries with it a...