Detail The INS and OUTS of SERP Swaps   Oleh:  Boma, John C. ; Toney, Justin D. Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 190 no. 4 (2000), page 44-50. Topik: swaps; INS; OUTS; serp swaps Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.11 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel When Congress enacted legislation restricting qualified retirement benefits, employers responded by creating nonqualified supplemental executive retirement plans (SERPs). These plans provide a tax - efficient way to restore benefits lost due to the restrictions in IRC sections 415 and 401 (a) (17). As Congress has continued to lower qualified plan limits, SERPs have become an increasingly important part of a corporate executive’s wealth accumulation strategy. Today, it’s common for more than 80 % of an executive’s retirement benefits to be delivered through nonqualified plans. Despite the benefits, many executives with sufficient retirement income are concerned about the tax inefficiency of SERP s as a wealth transfer vehicle. Multiple taxation and lost earnings can erode up to 85 cents of every dollar of SERP income transferred to an executive’s descendants. These taxes often include : - Income tax at receipt of SERP benefits. - Income and capital gains taxes as assets accumulate following retirement. - Estate, gift and possibly generation - skipping transfer (GST) taxes at transfer. Many companies are implementing programs to help executives with this tax planning problem. One approach to maximize wealth for future generations and create liquidity to pay estate taxes is called a "SERP swap.” Also known as a preservation of wealth plan, a benefit exchange or an excess benefit swap, the arrangement allows participants to exchange heavily taxed retirement benefits for employer - funded life insurance contracts. The favorable tax treatment of life insurance can help produce significantly more wealth for future generations. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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