The Bottom Line - Volume 48

Adoption of 2017 CSO Mortality Table
As mentioned in a previous, “The Bottom Line” article, a new life insurance standard mortality table (2017 CSO) has been adopted by the National Association of Insurance Commissioners, which was effective January 1, 2017; however, the table’s incorporation into insurance products will become mandatory on January 1, 2020. State regulators require the prevailing CSO table to be used to set maximum cost of insurance charges and determine minimum policy reserves and nonforfeiture values. The prevailing CSO table is also used for 7702 and 7702A tax testing. (read more)

Executive Benefit Spotlight – Supplemental Executive Retirement Plan (Defined Benefit Plan)
The Supplemental Executive Retirement Plan (SERP) is structured to allow banks to provide retirement benefits to their key executives that are above the limitations placed on qualified plans. These benefits will aid the bank in retaining and rewarding key executives. (read more)

IRS Announcement – Qualified Pension Plan Limitations for 2020
The Internal Revenue Service recently announced cost-of-living and statutory dollar limitations for qualified pension plans for 2020. Some of the changes are listed (read more)