Salary Continuation Planning/ QSPP allows you to work with business owners and show them how to use well-established IRS rules and regulations to their advantage.
In order to have your plans coordinate, I am recommending you have a 90-day wait on your QSPP for you and the other key employees.
Question: Most QSPPs will have benefits payable to either age 65 or to normal retirement age.
The company first adopts a plan resolution in which it formally creates the QSPP and names the employees who will be covered by the plan.
One of the benefits of a QSPP is the flexibility it offers business owners.
If the tax advantages of having a QSPP in place--deductible wage payments--are not enough to sell the idea, the tax advantages of funding a plan also make it attractive.
In addition to the tax benefits, an insured QSPP offers other advantages.
Although companies may already carry insurance policies that cover the risk of disability, they still may need a QSPP to provide them with full coverage in the event of disability.
Companies that don't have a QSPP in place may suddenly find tax deductions--past and present--called into question.
WITH THE AVERAGE DISABILITY LASTING THREE YEARS for men and almost four years for women, having a QSPP in place is important for a business.