The only cost associated with provision of a loan to executives is the administrative cost.
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To be eligible for a business tax credit for startup costs o…
To be eligible for a business tax credit for startup costs or employee education expenses incurred in connection with adoption of a retirement plan,
Astro Corporation is considering whether to finance its DBO…
Astro Corporation is considering whether to finance its DBO plan obligation in advance. Astro Corp. wants to avoid having to meet ERISA requirements. Astro Corp. should use
Which of the following can be provided on a cash option basi…
Which of the following can be provided on a cash option basis?
The IRC generally limits the amount of employer stock that c…
The IRC generally limits the amount of employer stock that can be in a retirement plan. Diversification is not required, however, for employee stock ownership plans (ESOPs).
One of the disadvantages of life insurance products is that…
One of the disadvantages of life insurance products is that policy expenses and commissions may be greater than for comparable investments.
Bob Everett is covered under a funded nonqualified deferred…
Bob Everett is covered under a funded nonqualified deferred compensation plan that has an irrevocable trust set up for his benefit. Bob must pay income tax as soon as he is vested in contributions made to the fund, even though he does not have a right to withdraw cash from the fund until he retires.
Michelle Fenner is the qualified plan trustee for the define…
Michelle Fenner is the qualified plan trustee for the defined benefit plan held by Flatt Tire Company. Flatt Tire uses life insurance as part of its qualified defined contribution plan. Currently, the cash value of the life insurance policies in the plan amounts to $50,000. Ms. Fenner can borrow against the cash value of the life insurance policies held in the plan.
Tony Johnson, an over-the-road trucker, had several out-of-t…
Tony Johnson, an over-the-road trucker, had several out-of-town trips early in the year, so he got an extension for filing his income tax return. Tony can make the maximum IRA contribution this year. He has until the last date of his income tax filing extension to make a tax-deductible contribution to his IRA.
Conservative Corp. wants to provide employees with low cost…
Conservative Corp. wants to provide employees with low cost long-term disability coverage. As the company’s financial advisor, you explain that integrating long-term disability coverage with ________ will accomplish that goal.