An employee who receives tax-free benefits under a dependent care plan also can use the dependent care tax credit on their personal tax return as long as legal maximums related to total dollar amount of dependent care are not exceeded.

Arthur Beech turned 67 this year. Arthur has a split dollar plan with his employer, Seashore Rental Properties. Arthur could replace this split dollar plan with a DBO plan and reduce his expenditures for insurance while still retaining a death benefit.

Benefits paid to the employee’s beneficiary under a DBO plan are taxable in full to the beneficiary as ordinary income.

When installing a DBO plan, the corporation is required to file a plan document with the government in addition to any ERISA reporting requirements.

Arthur Beech turned 67 this year. Arthur has a split dollar plan with his employer, Seashore Rental Properties. Arthur could replace this split dollar plan with a DBO plan and reduce his expenditures for insurance while still retaining a death benefit.

Benefits paid to the employee’s beneficiary under a DBO plan are taxable in full to the beneficiary as ordinary income.

An employee who receives tax-free benefits under a dependent care plan also can use the dependent care tax credit on their personal tax return as long as legal maximums related to total dollar amount of dependent care are not exceeded.

A self-employed person can use a money purchase plan to fund his or her own retirement.

The first step in the planning process is analyzing existing plans to find weaknesses.

A children’s daycare center must be located at the employer’s place of business to be tax-deductible to the employer.