Non-Qualified Plans

  • Credits: 5
  • Format: Self-Study eBook
  • Field of Study: Specialized Knowledge
  • Author/ Speaker: Paul Winn

Course ID: Advanced Preparation: Experience Level:
PW-810.S None Overview
Published Date: Program Prerequisites: Other Course Formats:
© July 2020 Basic Understanding of Personal Development eBook | Self-Study


This course examines the considerations that are relevant to establishing nonqualified plans, including the economic and tax issues, and discusses the financial products that are generally preferred in their funding. It looks at the tax treatment given the various plans and specifically addresses the still-unresolved tax issues surrounding split-dollar plans.

Nonqualified Plans examines the four popular nonqualified selective benefit plans being sold in the marketplace. The course considers the nature and use of:

  • Split-dollar plans
  • Executive bonus plans
  • Deferred compensation plans
  • Group carve-out plans

Learning Objectives:

After reading the course material, you will be able to:

  • Discuss the nature of nonqualified plans and how they differ from qualified plans.
  • Explain the particular employer and executive needs met through nonqualified plans.
  • Plan a targeted marketing approach designed to market nonqualified plans to business owners.
  • Discuss the types of deferred compensation plans and the principal business motives for establishing them.
  • Explain the use of rabbi and secular trusts in deferred compensation and the consequences of their use.
  • Discuss the use of permanent life insurance in the establishment of a deferred compensation plan.
  • Explain the basic characteristics of and prospects for split-dollar plans.
  • Explain the income tax treatment of split-dollar plans and the tax consequences of policy ownership.
  • Discuss how an insured executive bonus plan can assist a business to meet objectives.
  • Explain the tax treatment of executive bonus plans.
  • Design an executive bonus plan bonus arrangement.
  • Present the benefits to employers and participating executives of a group carve-out plan.
  • Discuss the tax treatment of group carve-out plans.

Who Should Attend:

  • All Certified Public Accountants (CPAs)

Qualifies and Approved with All State Boards of Accountancy and the following sponsorship’s: