BUSINESS SUCCESSION PLANNING - National Life Group

BUSINESS SUCCESSION PLANNING - National Life Group

Bonus Plans 4 1/2 Ways Trying on the Solution National Life Insurance Company | Life Insurance Company of the Southwest National Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affiliates. Each company of NL Group is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York. No bank or credit union guarantee | Not a deposit | Not FDIC/NCUA insured | May lose value | Not insured by any federal or state government agency This information is not intended as tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor. 2015 National Life Group TC86519(0815)3 Executive Bonus using Permanent Life Insurance

1 Income tax free death benefit1 2 Potential for retirement income through tax free loans and withdrawals2 3 Optional Accelerated benefits riders available that allow you to Access the death benefit in the event of a qualifying terminal, chronic, critical illness or critical injury3 4

Minimal personal out of pocket cost 5 Many variations possible 1. IRC Section 101(a)(1). There are some exceptions to this rule. Please consult a qualified tax professional for advice concerning your individual situation. 2. Policy loans and withdrawals reduce the policys cash value and death benefit and may result in taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender changes may reduce the policys cash value in early years. 3. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event and may affect your eligibility for public assistance programs. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional 2premium and

2015 Life Group may National not be available in all states or on all products. This is not a solicitation of any specific insurance policy. Bonus 4 Ways Single Bonus Key Advantage Bonus 3 2015 National Life Group

Double Bonus ? Key Advantage With Deferred Bonus Single Bonus 4 Single Bonus IRS

BONUS THE PREMIUM BUSINESS OWNER Business Tax Deductible Executive Pay the tax out of pocket 5 2015 National Life Group Advantages

Business Deductible Selective participation Simple, no IRS filings No set up costs 6 2015 National Life Group Executive Income tax free death benefit Access to all policy benefits Personal cost equals tax

due on the bonus Double Bonus 7 Double Bonus CASH IRS BONUS THE PREMIUM BUSINESS OWNER

Business Makes cash bonus to cover all the personal tax due Executive 8 No additional out of pocket cost 2015 National Life Group Advantages Business Deductible Selective participation Simple, no IRS filings No set up costs

9 2015 National Life Group Executive Income tax free death benefit Access to all policy benefits No additional out of pocket costs Key Advantage Bonus Plan 10 Single Bonus Plan

IRS BONUS THE PREMIUM BUSINESS 11 2015 National Life Group OWNER Key Advantage Single Bonus BONUS THE

PREMIUM BUSINESS OWNER IRS CASH Use policy cash value via loan to pay tax on income1 12 Policy loans and withdrawals reduce the policys cash value and death benefit and may result in a taxable event. 2015 National

Life Group Surrender charges may reduce the policys cash value in early years. Advantages Business Deductible Selective participation Simple, no IRS filings No set up costs 13 2015 National Life Group

Executive Income tax free death benefit Access to all policy benefits Potential to use policy cash values to pay tax Key Advantage Bonus Plan with a Deferred Bonus Arrangement 14 Key Advantage Single Bonus BONUS THE PREMIUM

BUSINESS OWNER CASH 15 2015 National Life Group IRS Key Advantage Bonus with Deferred Bonus DEFERRED BONUS

BONUS THE PREMIUM BUSINESS OWNER CASH Receive deferred bonus at retirement 16 2015 National Life Group IRS Advantages Business

Deductible Selective participation Strong golden handcuff Executive Income tax free death benefit Access to all policy benefits May receive additional benefits at retirement 17 2015 National Life Group

And the ? 18 Add Restrictive Endorsement Single Bonus Key Advantage Bonus 19 2015 National Life Group Double

Bonus Key Advantage With Deferred Bonus Which is the Right Choice? 20 For the Owner Executive 1 Where corporate tax rate is higher than personal tax rate. 2

Where business owner desires to use business check book. 21 2015 National Life Group For the Non Owner Executive 1 Single where no strong golden handcuff is needed 2 Double for a very valued employee 3

Key Advantage - where single bonus is used and key executive is a decision maker 4 Key Advantage With Deferred Bonus looking for long term commitment 22 2015 National Life Group Information needed 23 1

Type of business entity C Corporation or Pass Thru? 2 Who is receiving the benefit? 3 Business tax bracket and Participant tax bracket. 4 When should the arrangement terminate? 5

What is desired after the arrangement terminates? 6 How will the executive pay their costs? 2015 National Life Group

Recently Viewed Presentations

  • Chapter 3 Nuclear Radiation

    Chapter 3 Nuclear Radiation

    Chapter 9 Nuclear Radiation 9.1 Natural Radioactivity Radioactive Isotopes A radioactive isotope has an unstable nucleus. emits radiation to become more stable. can be one or more of the isotopes of an element Nuclear Radiation Nuclear radiation is the radiation...
  • Acute Respiratory Distress Syndrome

    Acute Respiratory Distress Syndrome

    And also recommended in patients with recurring thromboembolism despite adequate anticoagulation, chronic recurrent embolism and pulmonary hypertension, and concurrent surgical pulmonary embolectomy or pulmonary endarterectomy procedures * FIGURE 11-2 Insertion of umbrella filter in inferior vena cava to prevent pulmonary...
  • To Be or Not to Be: The Mysteries of Disk Formation Around ...

    To Be or Not to Be: The Mysteries of Disk Formation Around ...

    To Be or Not to Be: The Mysteries of Disk Formation Around Rapidly Spinning Be Stars Douglas R. Gies Department of Physics and Astronomy Center for High Angular Resolution Astronomy Georgia State University Outline Introduction to the Be Stars Evolution...
  • Size Specs - download.microsoft.com

    Size Specs - download.microsoft.com

    Now I will make a copy of "default.aspx" then set the reference of the copied page to that of the new master page I created. Now . I can change the look and feel. Or the other option will be...
  • Clinic and Laboratory Safety

    Clinic and Laboratory Safety

    Hepatotoxins -liver damage. Mutagens-damage genetic materials in cells. Nephrotoxins - Kidney damage. Neurotoxins - damage to the nervous system. Tertatogens - birth defects. Patient Safety Monitoring in International Laboratories (SMILE) Program.
  • Introduction to Mass Media - WordPress.com

    Introduction to Mass Media - WordPress.com

    9. Regulations and Ethics: Government attempts to coordinate and control the net. Internet censorship in UAE: UAE Telecom Regulatory Authority . Internet Content that contradicts with the ethics and morals of the UAE including Nudity and Dating.
  • Urban Life - robeson.k12.nc.us

    Urban Life - robeson.k12.nc.us

    Urban Life. Chapter 16, Section 2. The Evolution of the City. ... Subcultural theory = cities encourage formation of primary group relationships; can always find someone of similar interests in a city. Claude S. Fisher. Theories to Explain city Life...
  • Visualization, Lecture #8

    Visualization, Lecture #8

    [email protected] * * * * Overview Flow Visualization with a range of techniques: Streamline seeding Stream, path, and streak surfaces Surface placement Texture based flow visualization Feature-based flow visualization Acknowledgments * Who is Bob?