Nonqualified Plans examines the four popular nonqualified selective benefit plans being sold in the marketplace. The course considers the nature and use of:
- Split dollar plans
- Executive bonus plans
- Deferred compensation plans
- Group carve-out plans
The course examines the considerations that are relevant to establishing nonqualified plans, including the economic and tax issues, and discusses the financial products that are generally preferred in their funding. It looks at the tax treatment given the various plans and specifically addresses the still-unresolved tax issues surrounding split dollar plans.
Upon successful completion of this course, the agent should be able to:
- Discuss the nature of nonqualified plans and how they differ from qualified plans
- Explain the particular employer and executive needs met through nonqualified plans
- Plan a target marketing approach designed to market nonqualified plans to business owners
- Discuss the types of deferred compensation plans and the principal business motives for establishing them
- Explain the use of rabbi and secular trusts in deferred compensation and the consequences of their use
- Discuss the use of permanent life insurance in the establishment of a deferred compensation plan
- Explain the basic characteristics of and prospects for split dollar plans
- Explain the income tax treatment of split dollar plans and the tax consequences of policy ownership
- Discuss how an insured executive bonus plan can assist a business to meet objectives
- Explain the tax treatment of executive bonus plans
- Design an executive bonus plan bonus arrangement
- Present the benefits to employers and participating executives of a group carve out plan
- Discuss the tax treatment of group carve out plans
No advance preparation needed
Program Level – Basic
Program prerequisites – None
Delivery method – QAS self-study
Recommended CE credits – 4
Recommended field of study – Insurance/Financial Planning
Copyright 2025 by Winn Publications ALL RIGHTS RESERVED. NO PART OF THIS COURSE MAY BE REPRODUCED IN ANY FORM OR BY ANY MEANS WITHOUT THE WRITTEN PERMISSION OF THE COPYRIGHT HOLDER. All materials relating to this course are copyrighted by Winn Publications. Purchase of a course includes a license for one person to use the course materials. Absent specific written permission from the copyright holder, it is not permissible to distribute files containing course materials or printed versions of course materials to individuals who have not purchased the course. It is also not permissible to make the course materials available to others over a computer network, Intranet, Internet, or any other storage, transmittal, or retrieval system. This document is designed to provide general information and is not a substitute for professional advice in specific situations. It is not intended to be, and should not be construed as, legal or accounting advice which should be provided only by professional advisers. No advance preparation needed Program Level - Basic Program prerequisites - None Delivery method - QAS self-study Recommended CE credits - 2 Recommended field of study - Insurance/Financial Planning
