Strategies for your client

Based on your responses your business client may benefit from an Supplemental Retirement plan or Split Dollar plan.

Supplemental Retirement plan

Businessman working at his computer

See how a supplemental retirement plan (SRP) Can provide business owners with:

  • An income tax-free death benefit for their beneficiaries
  • Tax-deferred growth opportunities
  • A tax-efficient financial resource through income tax-free policy loans or withdrawals*
  • No contribution limits or penalties for early withdrawals, unlike qualified plans 

   
Split Dollar plan

Businessman and construction worker looking at plans

See how a SPLIT DOLLAR PLAN can provide business owners with:

  • Minimal impact to their balance sheet
  • A customized plan design for themselves
  • An attractive retirement benefit using business dollars
  

*Income tax-free loans and withdrawals will reduce the policy’s cash value and death benefit. Distributions are taken through loans and withdrawals, which reduce a policy’s cash value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax-free. Withdrawals and surrenders are tax-free up to your cost basis, provided your policy is not a modified endowment contract (MEC). A MEC policy is one in which the life insurance limits exceed certain high levels of premium or the cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract, and an additional 10% federal income tax may apply for withdrawals made prior to age 59½.