Split Dollar Life Insurance Form

A split dollar arrangement is a strategy in which a life insurance policy s premium cash values and or death benefits are split between two parties owner and non owner.

Split dollar life insurance form. Split dollar life insurance agreements usually include information such as. Sample endorsement method. The final regulations apply to any split dollar life insurance arrangement entered into or materially modified after september 17 2003 the date of publication for the final split dollar regulations. In a split dollar plan an employer and employee execute a written agreement that outlines how they will share the premium cost cash value and death benefit of a permanent life insurance policy.

990 reporting reporting supplemental executive retirement plans serps and split dollar arrangements sdas on irs form 990 require care but the rules are straightforward. A split dollar plan starts with the employer and the employee signing a contract. Rather it is a method of financing the purchase of life insurance. Split dollar is a method of buying life insurance not a reason for buying it.

While contract details can vary every plan will outline how much each person will pay toward the life insurance premium and who is eligible to cash in on the benefits of the policy. Review the securities and exchange commission sec form 10 k annual report including items 10 11 and 12 to identify the 16b executives. A split dollar arrangement is a method of purchasing life insurance in which the premium payments policy benefits or both are split between a business and an employee or sometimes between two individuals or between an individual and a trust. There is an owner of the policy and a non owner.

Whereas the employee is a valuable employee of the employer and has been employed since date. These private arrangements often involve an irrevocable life insurance trust or an ilit. The service expects to announce the availability of form 8870 by may 15 2000 and notes it will revise forms 990 990 pf and 5227 for taxable years beginning after december 31 1999 to add questions relating to charitable split dollar insurance arrangements described in section 170 f 10 f of the code. Split dollar insurance agreement employer pay all agreement this agreement entered into this day of 20 by and between midland credit management inc hereafter called the employer and name hereafter called the employee witnesseth.

By offering to pay part of the cost of the life insurance policy the employer provides a good benefit to their employees. It is not a type of life insurance or a reason for buying life insurance.