2021Q1 STREAM Report
Welcome to our 2021Q1 STREAM Report
STRATEGY
Titanium Plan by Newcleus – Introducing a new retirement plan strategy that provides tax-free retirement income and death benefits for the plan participant’s heirs, and eliminates the dependency on the sponsoring employer. The design also steers clear of ERISA, 409A, and provides cost recovery. For more information on the Titanium Plan go tohttps://newcleus.com/learn-more-about-titanium/ or contact Chris Pezalla at cpezalla@newcleus.com.
401(k) & Pension Advisory Services – When was the Last Independent Benchmarking Review of Your Plan? – Newcleus partners with Alden Investment Group to provide a variety of 401(k) and Pension Plan advisory services. We have helped clients enhance their Retirement Plans and lower Plan costs/fees. If you are interested in a free analysis for Plan Due Diligence, please contact Tony McCracken at (amccracken@aldeninvestmentgroup.com) or visit (https://aldeninvestmentgroup.com/retirement-plans/) for more information.
Charitable Donation Accounts
Credit unions have the ability to make a massive and direct impact in the lives of their members and their communities through Charitable Donation Accounts (CDAs). The CDA allows the credit union to invest in assets beyond their traditionally allowable options. In the current environment, many of those options are expected to provide significantly higher yields than traditional options. In fact, many options allow the credit union to earn as much if not more than traditional alternatives even after providing the required 51% to the charity.
Learn more about their impact and how they work here.
TECHNOLOGY
Network and Infrastructure Vulnerability Assessments & Social Engineering – Newcleus has completed its most recent Social Engineering assessment for 2020Q4. The next vulnerability assessment is expected to be completed by end of 2021Q1. Testing will be conducted by RKL, LLP.
BOLI Reporting Enhancements – Newcleus has completed a new, enhanced BOLI report that consolidates and streamlines the asset value and suggested general ledger entry into one comprehensive report. The enhancement will promote Newcleus’ control environment while adding speed and efficiency to the report delivery process.
REGULATORY
Changes to IRC Section 7702 and what it means to BOLI cash value returns – At the end of December 2020, Congress passed the Consolidated Appropriations Act, 2021 which included revisions to IRC Section 7702. The changes have a significant impact on permanent life insurance and includes BOLI. The result is that more premium can be placed into a BOLI contract, meaning less death benefit is purchased, resulting in a lower cost of insurance charges, ultimately leading to improved return on cash value. This improvement makes BOLI cash value return more attractive and worth a look. To see what this could mean to your institution see the Newcleus BOLI Index or contact Chris Pezalla atcpezalla@newcleus.com.
EVENTS AND ANNOUNCEMENTS
Flynt Gallagher, President of Newcleus Compensation Advisors, will be speaking at Kentucky Bankers Association’s Annual Spring Conference on April 18-20.
Newcleus Credit Union Advisors will be attending Mountain West Credit Union Association’s Annual Meeting & Convention on May 5-7, 2021.
LINQS+ Celebrates Ten Years
Click here for statistics on the success of LINQS+ since its induction.
MARKETPLACE
Newcleus BOLI Index Classes (“NBI”)*
The Newcleus Bank-Owned Life Insurance Index (NBI) is intended to offer the user a “snapshot” of the current BOLI marketplace. The index is intended to guide financial managers’ expectations within the BOLI marketplace and across different BOLI strategies.
Click here to view Newcleus 2021Q1 BOLI Index
*For informational and discussion purposes only. The NBI does not represent, guarantee, or put forth all the terms, rates, and conditions of any potential transaction. Newcleus assumes no obligation or liability for updating or otherwise revising the NBI.
Contact Rich Pearson, Chief Operating Officer, at rpearson@newcleus.com, or
Chris Pezalla, EVP, Chief Actuary, cpezalla@newcleus.com, for more information.
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Disclaimer: Please note that Newcleus does not practice accountancy, nor engages in the practice of law. The information contained in this guide should not be considered legal, tax, or accounting advice. Any appropriate review by the bank’s legal, tax, and/or accounting professional should precede any action taken on the reliance of the information contained herein – 2021Q1 STREAM Report.
Circular 230 Disclosure: To comply with regulations issued by the IRS concerning the provision of written advice regarding issues that concern or relate to federal tax liability, we are required to provide to you the following disclosure: Unless otherwise expressly reflected herein, any advice contained in this document (or any attachment to this document) that concern federal tax issues is not written, offered or intended to be used, and cannot be used, by anyone to avoid federal tax penalties that may be imposed by the IRS or promoting, marketing or recommending to another party any matters addressed in this document or any attachment.