Participant's claim to excess cash surrender value prior to rollout of a split-dollar policy
RW:
Why not contact the insurance agent that sold the policy to the company. They usually know all of the ins and outs of these types of policies?
Why not contact the insurance agent that sold the policy to the company. They usually know all of the ins and outs of these types of policies?
What is your question? If the participant accesses their portion of the cash value prior to rollout, then typically the split dollar agreement terminates at that time. Upon release of the collateral assignmenet, all of the cash value that belongs to the participant should be reported as income on a W-2 and withholding should occur.
QUOTE (Ry Benefits @ May 21 2007, 01:00 PM) 
What is your question? If the participant accesses their portion of the cash value prior to rollout, then typically the split dollar agreement terminates at that time. Upon release of the collateral assignmenet, all of the cash value that belongs to the participant should be reported as income on a W-2 and withholding should occur.
Upon release of the collateral assignment, cash value would be income on W-2, but would it also be income on W-2 subject to FICA taxes?
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