Bank Directors Seminar, Coeur d'Alene, ID

Using Deferred Compensation Age 27 – Monthly Contribution (target) 7.50% of salary – Current Salary $60,000 – Crediting Rate – Projected Account Balance End of Yr 10 $76,000 – Deferral period can be extended under certain conditions – Projected Account Bal if extended to age 65 $1,350,000 – Benefits are forfeited if he/she competes Example 2 • Assumptions – AVP, Accounting

50% of ROE (subchapter S)

This is a hypothetical illustration and is for informational purposes only.

©2018Equias Alliance, an NFP Company

19 Death Benefit Plans

• Split-Dollar Plans – Arrangement between parties to share the benefits of a BOLI policy upon the death of the insured – Typically the bank pays the premium while allowing the executive or director to name a beneficiary to receive a portion of the death benefit (insured participant is taxed on the value of the economic benefit) – Agreement may state that the benefit is retained after separation from service if certain requirements are met – Death benefits to the beneficiary are not subject to federal income tax

©2018Equias Alliance, an NFP Company

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