COLI/BOLI

Recent Settlement Highlights Risks Associated with Top Hat Plans

Topics: COLI/BOLI, NQDC

The WRMarketplace is created exclusively for AALU/GAMA members by experts at Troutman Pepper Hamilton Sanders LLP and the AALU/GAMA staff. WR Marketplace #20-16 was written by Jim Earle and Christopher Stock. The AALU/GAMA WR Newswire and WR Marketplace are published by AALU/GAMA as part of the Essential Wisdom Series, the trusted source of actionable technical…

Update: COLI/BOLI Reportable Policy Sale / Transfer for Value Treasury Regulations

Topics: COLI/BOLI, Transfer for value

March 10, 2020 WRN 20.03.10 Update: COLI/BOLI Reportable Policy Sale / Transfer for Value Treasury Regulations Disclaimer This memorandum is not intended to constitute tax or legal advice. Reminder Asset based mergers that include life insurance have always been treated as Transfers for Value affecting the taxation of the death benefits. Nothing in the Tax…

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 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…