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Tax Deduction Consulting: SERP Deduction Manchester NH

Supplemental Executive Retirement Plans (SERP) have been a highly controversial subject in recent years. On one side, they have been seen as an important part of the overall compensation and benefit package necessary to hire and retain top executives. On the other side is increased competition that makes bottom line profit ever more important.

Mr. James E. Knee (RFC®), MBA
(603) 224-1010
6 Loudon Road, Suite 505
Concord, NH
Company
Sterling Financial Services, LLC
Qualifications
Education: B.S., University of Bridgeport;MBA, Southern New Hampshire University;Advanced Certificate in International Business;Series 24 Registered Principal License;Series 7 and 63 Securities License;NH Health and Life Insurance License
Years of Experience: 26
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Education Plan, Asset Protection

Data Provided by:
Fishers Income Tax Svc
(603) 622-2057
616 Mast Rd
Manchester, NH

Data Provided by:
H&R Block
(603) 647-6974
1328 Hooksett Rd
Hooksett, NH

Data Provided by:
Melanson Heath & Co PC - Linda Imhoff CPA
(603) 882-1111
102 Perimeter Rd
Nashua, NH

Data Provided by:
Devereaux & Ean-Dixon Bookkeeping LLC
(603) 717-1214
PO Box 2794
Concord, NH
Prices and/or Promotions
10% off of individual tax return prep

H&R Block Inside Northside Plaza
(603) 628-1976
67 HAMEL DR UNIT B4A
MANCHESTER, NH

Data Provided by:
Danis & Company
(603) 656-9041
169 South River RD #14
Bedford, NH
 
Steele Associates
(603) 673-4660
54 Nashua St
Milford, NH

Data Provided by:
Kline & Company, CPA, P.C.
(603) 881-8185
141 Main Street
Nashua, NH
 
J Walker & Co LLC
(603) 224-4829
104 N State St
Concord, NH
Hours
Mon 09:00 AM-05:00 PM;Tue 09:00 AM-05:00 PM;Wed 09:00 AM-05:00 PM;Thu 09:00 AM-05:00 PM;Fri 09:00 AM

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Tax Deduction Consulting: SERP Deduction

SERP Tax Deduction

The Serb tax deduction is the name given to a business tax deduction involving the funding of a SERP, or Supplemental Executive Retirement Plan.

Supplemental Executive Retirement Plans (SERP) have been a highly controversial subject in recent years. On one side, they have been seen as an important part of the overall compensation and benefit package necessary to hire and retain top executives. On the other side is increased competition that makes bottom line profit ever more important. In addition to this, there is an increasing sense that top executives are already being too highly compensated. The SERP is called a supplemental plan because it is designed to allow retirement savings that go beyond the contribution limits allowed for other qualified retirement plans like 401K's. The SERP tax deduction situation does not favor their use either.

The question is based on the necessity of the SERP as a legitimate business expense that is both necessary and ordinary. From the executives point of view the retirement plan is unqualified and therefore is not restricted by the requirements of the IRS. This allows considerable laxity in the operation of the plan. Although they do not have the same tax deferment benefits as a qualified plan, such provisions as penalty free early withdrawal can be part of the package. Of course, the plan is usually totally funded by the employer and therefore is really a form of compensation.

However, the Company offering the SERP is also accruing the funds. They are being retained or invested to fund the program. The funds, basically, remain within the company and therefore are not a business deduction until such a time as they are actually distributed to the retired employee. Even then distribution plans that provide yearly distributions will make the life span of the retired executive an issue. Some top executives have been known to cancel their own SERPS because of the negative impact on company profit margins...

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