This System features voluntary compensation reductions which are used by an employer to finance loans to fund split dollar arrangements which can produce tax free retirement income for virtually any executive who can afford the reduction, and any profit-making or tax exempt organization can use it.
Includes
- Leveraged Compensation System
- Leveraged Compensation Computer Business Card
- Unlimited choice of Linked Carrier Snap-Ons
This System features voluntary compensation reductions which are used by an employer to finance loans to fund split dollar arrangements which can produce tax free retirement income for virtually any executive who can afford the reduction, and any profit-making or tax exempt organization can use it.
With one of the variations of this plan, an employer provides a bonus to the employee equal to the premium on a life insurance policy and extends split dollar loans to cover the income tax on the bonus.
Final Regulations Potentially Affect LCS in Tax Exempt Organizations
The IRS has released final regulations implementing the "Intermediate Sanctions" legislation passed in 1996 as IRC Code Sec. 4958. This new Code section could impose excise taxes for "excess benefit transactions" on participants in LCS plans between tax exempt organizations and their managers or other insiders unless care is taken in documentation.
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