bonus life insurance plan benefit executives?

 But recently I think we seem to the Resurgence of the 162 executive bonus life insurance program what's driving that a couple of things I think the biggest driver of it is been the introduction of something known as the Roth IRA people have become very enamored by the concept of the Roth IRA in the problem with the Roth IRA for a row management they're highly compensated people if I don't qualify to be able to go into an annual Roth IRA because their income level is too high and yet they don't like the idea of the flavor of the type that text meant if it's a Roth IRA off into somebody so I think that that's that's important and the second thing that is made it very attractive today in the real Resurgence as you profess you say is the fact that you want it so you're no longer for money that goes into this account an unsecured credit of the employer you want the accident in Florida Neverland for creditors never have a resource to 7 nonqualified deferred compensation plans always have that issue that you're the unsecured creditor in this case where we've got to plan where that's not the case in the economic environment is really exacerbated that concern 5 years ago people especially in size large or concerns about what happens if the employer goes under it's just not going to happen but since 2008 people are very concerned about that and it may be another driver is there a lot of people expect tax rates will go up so pain text texts now instead of having text to 4 Almighty more power to ya I know it's really will go up or not there's a big concern that the tax consequences today as to what will happen to the tax code in the future what will happen to tax rates in the future is so uncertain that people are really worried about you I really have been in situations where we had stop tax brackets actually have 90% but a lot of people will remember the 70% traits that we had and where they were going to go back 2 words that an environment of uncertainty 35% tax rate this may sound pretty good to some people look for a why would I why would I wanted to 4 money at 35% so that I can take it out down the road and pay 70% or 15% or whatever it is is the concern though so it's like what the tax ramifications of a 162 program ok let's think about what advantage savings means they were concerned about when you think about putting dollars aside what is the contribution stage when I put the money aside am I getting the tax deferral at this point though where do I pay taxes on money that I put aside first secondly what happens during the monies accumulation. Is it going to grow text for you to have to pay money if I get some this weekend and realize the best we can and 1/3 what happens when I take some money out so if you think about a qualified retirement plan and then plan on top of that they get the tax advantage for when you put the money in you don't pay taxes on the money grows and grows without you having to pay taxes Joel text to 4 add but when you take the money out its ordinary income to qualify plan with their own plan but everything was there when he came in a row the changes that the money you put in his after-tax dollars you paid money you pay tax on that money already be close text her just like the other plans but when you take it out you can take it out tax-free so you traded off the up front the fall of the text to get the exit the outside text text right now this is where the game comes out for you cuz you were to pay tax on the basis on the money that you put it the problem as we mentioned before is Roth IRA is a very limited as to who can have them so the question is is there some vehicle that can emulate with properly designed the tax consequences of a Roth IRA has without those statutory limitations there's really only one section of the Internal Revenue code that allows for that type of tax consequence and that's the section of the Internal Revenue code for tax purposes and insurance section 7702 of the Internal Revenue code go to have insurance on it but you also have the ability to put some corn out of the And properly administered can get tax free income out of that program down the road so from it smaller smaller than one Roth IRA by any sense from a purely tax standpoint you can emulate the tax consequences for that and you started talking about this a little bit and we don't need to get into that in any great detail but I think it's important to recognize that you know what the right you get bottom it as long as you meet certain requirements in taxes and withdrawals with this type of plan it's definitely more complicated than they have to make sure you really have to be mad at you know what you're doing and see if your idea is that they can come out of this program down the road but borrow when you get stood on the tax-free basis and then after you're finished taking out what you need to do then