Executive Benefit Plan (EBP)

A Capital Accumulation Plan for Employees of Non-Profits

For over 20 years, Executive Benefit Strategies has provided leading edge solutions for executives and physicians of tax-exempt organizations. We assist nonprofits and their higher compensated employees with tax planning strategies that provide the needed tools to retain, reward and recruit the highest level of executive and physician talent. Our proprietary solutions and concepts allow the higher compensated employee to achieve their retirement goals by implementing supplemental capital accumulation programs that allow the individual to create ultimate financial security

As a higher compensated executive or physician, the great benefits to the community of a non-profit organization do not translate in advantages for you in terms of employer-sponsored retirement planning. Current tax laws have created an environment for higher compensated employees of exempt organizations that essentially limit or, in most cases, eliminate supplemental pre-tax savings for retirement. The Executive Benefit Plan (EBP) is a third generation supplemental capital accumulation program that meets all current IRS regulations and, in a conservative design and concept, provides the higher compensated employee the opportunity to meet their retirement goals and dreams. Designed to allow for substantial pre-tax contributions, the EBP avoids the restrictive and unattractive aspects of traditional non-qualified plans and on both a qualitative and quantitative basis, delivers flexibility and value like no other program or concept.

Executive Benefit Plan (EBP)

Plan Features and Benefits
Key Features and Benefits

Pre-tax contributions No Legislative Limit on annual contributions Tax-favored distributions Immediately Vested Benefits Plan Benefits secure from Employer Creditors Variety of investment choices and products May include a supplemental life insurance benefit Superior Post employment benefits Financially neutral on Employer financial statements
To tal Net Reti rement Benefi ts Pai d

Finding a Non-qualified plan for tax exempt organizations that is effective has been a puzzling process due to the very restrictive legislative controls causing these plans to be unattractive for employees. These limitations require employees to be unvested in their own benefits, then be taxed on a lump sum basis when they become vested, not when they receive benefit payments. The EBP avoids these seemingly impossi-

$900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 Traditional Plan After-tax Plan EBP

ble provisions and provides a capital accumulation platform that has the flexibility and performance to meet employees needs and goals.

1215 HIGHTOWER TRAIL SUITE B-120 BATLANTA, GA 30350 (678) 787-8683 787-

442 NORTH BUNKER HILL ROAD P. O. BOX 368 COLFAX, NC 27235 (336) 996-3524 996-

Chart results above is based on the following assumptions: Participant age 45, contributing $20,000 annually for 15 years. benefits payable annually for 20 years beginning at age 65. Assumed investment rate of 7.0% for Indexed life and alternatives, assumed federal and state combined tax rate of 39%, assumed tax rate on after tax plan earnings of 27%. All benefits illustrated above are provided net of all taxes, fees and expenses.

www.ebsconsulting.org