29 Hoosier Banker June 2016 advantage of purchasing an annuity is that the cash inflows from annuity payments can be set to match the cash outflows for benefit payments, because corporate-owned annuities do not enjoy the tax deferral benefits of individually owned annuities, there is a mismatch of income taxation (annuity) with income tax TODD ANDRITSCH tandritsch@equiasalliance.com 11416 Forest Knoll Circle Fishers, IN 46037 Tel: 317.517.5000 www.equiasalliance.com Equias Alliance helps banks in Indiana, and across the country, meet their financial goals, manage benefit liabilities and enhance shareholder value with a custom designed BOLI program. Todd and the team at Equias Alliance want to be your source for strategic benefit and BOLI solutions. In Indiana, The Checkered Flag for BOLI is Todd Andritsch! The American Bankers Association (through its subsidiary, the Corporation for American Banking) has endorsed services provided by Equias Alliance. Todd Andritsch is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC Equias Alliance LLC is independent of ProEquities, Inc. ©2016 Equias Alliance EA-Ad-03-2016-Indiana-HP-01ab.indd 1 3/3/16 10:01 AM Continued on page 30. investment allocation and same cost of money were used in scenarios 2 through 5. 1. Unfunded. A benefit plan is implemented, and no specific assets are earmarked to generate income to offset the expenses. The bank accrues an accounting reserve for the benefit liability as required under GAAP and makes payments out of general cash flows. This method is simple and has often been used when the bank does not have additional BOLI capacity. 2. Bank-Owned Annuity Contract. The bank purchases a fixed annuity contract (variable annuities are not a permissible purchase for banks) on the lives of the plan participants. While the primary About the Authors David Shoemaker, CPA/PFS, CFP®, is a principal of Equias Alliance, which through consultants has assisted over 800 banks in the design of nonqualified benefit plans, performance based compensation and BOLI. Becky A. Pressgrove, CPA, is senior vice president and chief operating officer at Equias Alliance. She brings 22-plus years of experience with nonqualified benefit, BOLI and COLI programs. Equias Alliance is a Diamond Associate Member of the Indiana Bankers Association. For more information, contact Todd Andritsch at 317-517-5000, email: tandritsch@equiasalliance.com.
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