Loan Regime Split Dollar arrangements have received a lot of publicity recently as an attractive alternative to traditional Supplemental Executive Retirement Plans and other forms of non-qualified deferred compensation, especially among non-profit organizations seeking possible relief from the new 21% excise tax. Among the frequently cited benefits of such arrangements are the relatively favorable accounting treatment and disclosure requirements. However, those potential advantages may not be realized unless the program is properly structured and managed.
A Practical Guide to Accounting for Loan Regime Split Dollar Arrangements
If you are considering the use of a loan regime split dollar arrangement, we invite you to review our white paper, “A Practical Guide to Accounting for Loan Regime Split Dollar Arrangements.” It will provide clarity of the accounting and disclosure issues, and guidance as to the most favorable plan design.