Compliance May 8, 2003

IRS Finalizing Split-Dollar Regulations

May 8, 2003 (PLANSPONSOR.com) -The Internal Revenue Service (IRS) has announced a comment period and proposed hearing relating to the valuation of economic benefits under an equity split-dollar insurance agreement.
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Under a split-dollar life insurance arrangement, two parties agree to split the premiums or benefits, or both, of a life insurance policy.   The pool of assets is then held by the life insurance company, effectively placing the cash value beyond the reach of the employer or the employer’s creditors.   These arrangements are used to compensate employees or to make gifts to one or more family members.  

The IRS news release provides notice of a public hearing on the matter to be held on July 29.   Any written or electronic comments must be received by July 8.  

>Written comments should be sent to CC:PA:RU (REG-164754-01), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. The public hearing will be held in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC.  

More information can be found  here .

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