Executive Benefit Programs


You can help retain key employees and attract new talent by offering executive benefits. Plans can be customized to provide for the financial needs of key executives, using an individual life insurance policy, annuity contract, or a combination of both.

You can implement employee benefit programs and strategies such as qualified or non-qualified deferred compensation programs, executive bonus programs, Executive 162 Bonus Plans, split-dollar insurance, simplified employee pension plans, and savings incentive match plans.

Generally, executive benefit programs are paid for with an individual life insurance policy, annuity contract, or a combination of both. Executive benefit programs help employers attract and retain top talent. These types of benefits help executives plan to maintain their lifestyle, prepare for the unexpected and accumulate wealth for their retirement.


Savings Incentive Match Plan for Employees (SIMPLE-IRA)


In this written salary reduction arrangement, eligible employees contribute to an IRA in their name. As an employer, you are required to make annual contributions for each eligible participant. This type of arrangement is available to self-employed individuals or owners of companies that have 100 or fewer employees and no qualified retirement plan. Employees are eligible for a Savings Incentive Match Plan if they earn at least $5,000 annually.

For 2013, the maximum employee contribution limit is the lesser of 100% of compensation or $12,000. SIMPLE IRA owners age 50 or older (as of December 31 of the tax year to which the contribution relates) may be eligible to make an annual “catch-up” contribution each year of $2,500. The money contributed to a SIMPLE IRA will accumulate tax deferred until money is withdrawn. Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal income tax penalty may apply and this penalty is increased to 25% for distributions taken within the first two years of participation in the plan.


Simplified Employee Pension Plan (SEP-IRA)


This type of arrangement is for businesses of any size, including self-employed individuals. In order to be eligible, employees must be at least 21 years of age and employed by the company for three of the last five years. In this agreement, employers can make contributions to IRAs for all eligible employees. IRAs are established by each individual and funded entirely by the company. Employer contributions are discretionary and the employer can determine the amount or percentage each year.


Defined Benefit Plans


Commonly known as pension plans, defined benefit plans provide employees with a fixed benefit upon retirement that is typically dependent on salary, length of employment and age at retirement. Whether you are looking for a fully bundled, semi-bundled, or investment-only approach to plan service, or you are looking for a provider that can combine services for both defined contribution and defined benefit plans, our service model provides you with the flexibility you need to help achieve and maintain the goals you set for your plans. We can assist you whether your plan is active, frozen, or terminating. Defined Contribution Plans The most common defined contribution plan is the 401(k), a company-sponsored, tax-deferred retirement savings plan. Growth in these plans typically depends on employee and/or employer contributions and investment selections. Companies of all sizes may offer them as a way to both attract and retain employees by helping them save for retirement.


Non-Qualified Deferred Compensation Plans


Non-qualified deferred compensation plans are for companies with highly compensated employees whose ability to maximize plan contributions may be limited by the qualified plan. They are an option for helping these employees address their retirement needs while also helping your company attract and retain key executives.


Executive Carve Out


Delivering enhanced benefits, including disability income insurance, to the executives and senior professionals in your company could help to keep you competitive in the market.

An executive benefit plan can be developed to satisfy the disability income insurance protection needs of your executives. Typically, most group long-term disability benefits may only cover a fraction of a high-income earning executive’s net monthly income. You can obtain a policy to supplement the long-term disability group coverage your company may be currently providing. And executives have the flexibility to purchase a policy to fit their needs and more closely align with their overall income.

Supplemental individual disability income insurance issued on a guaranteed standard issue basis provides executives important disability income insurance coverage with simplified underwriting.

Disability income insurance can be offered to executives on a voluntary basis or as a company-paid benefit. Disability income insurance can be implemented with little or no cost to employers. As a voluntary benefit, it provides executives with non-cancelable, portable coverage at a reduced premium. Generally speaking, a company may enjoy tax benefits if it provides coverage as an employer-paid benefit.

RS-32189-00 06/15

onewealthmgmtExecutive Benefit Programs