At Executive Benefit Solutions, we understand the unique challenges faced by nonprofit organizations in attracting and retaining top talent without the ability to use equity shares or traditional deferred compensation plans. With this detailed overview of the Triad Plan, we describe an approach designed to navigate the complexities of IRS Section 457(f) and offer a tax-advantaged solution for voluntary employee contributions.

What Sets the EBS Triad Plan Apart?

The Triad Plan stands out by offering a unique combination of tax benefits not found in traditional deferred compensation or qualified plans. While utilizing a pretax contribution strategy, the plan also allows for tax-deferred accumulation and tax-free withdrawals, leveraging an efficiently priced permanent cash value life insurance policy as its foundation. This approach ensures that nonprofit employees can accumulate assets on a tax-favored basis, bypassing the restrictions of 457(f).

Key Features and Benefits:

• Tax-Advantaged Accumulation: Contributions are made with pretax dollars, reducing current taxable income and allowing for tax-deferred growth.
• Tax-Free Withdrawals: Utilizing a life insurance policy enables withdrawals to be received without income tax, offering a triple advantage in tax benefits.
• Enhanced Retirement Savings: The plan encourages maximizing pre-tax contributions to 403(b) and 401(k) plans, with the Triad Plan™ serving as a powerful supplement for retirement accumulation without contribution limits or age restrictions.
• Life Insurance Benefit: Participants gain a tax-free life insurance benefit, providing additional security and peace of mind for their families.

Why Choose the EBS Triad Plan?

Designed with the premise that a portion of retirement savings should be both non-taxable and protected from creditors, the Triad Plan eliminates the worry of future tax rate increases impacting the plan’s financial benefits. It offers a comprehensive solution for nonprofit organizations to attract, retain, and reward their key personnel effectively.