Supplemental Executive Retirement Plans (SERP)
Retain top executive talent and reward key leaders. Joe Duvert designs non-qualified executive retirement programs, Section 162 bonus structures, and split-dollar plans that transcend 401(k) statutory contribution caps.
Executive Compensation Strategy
Reward Key Leadership
Custom executive benefit solutions designed to reward essential key players, defer taxation, and protect business continuity.
Licensed Independent Agent
Joe Duvert • Tampa, Florida
Why Implement a SERP?
Standard qualified retirement plans like 401(k)s often cap contributions for highly compensated executives, creating a significant income-replacement gap during retirement. A Supplemental Executive Retirement Plan (SERP) allows corporate leaders to accumulate substantial tax-deferred wealth while tying executive retention directly to company milestones.
Core Features of Executive Benefits
Three pillars of a well-architected corporate SERP strategy:
1. Selective Executive Benefits
Exempt from ERISA Limits
Unlike qualified plans (401k/SEP) that require non-discriminatory participation across all staff, SERPs allow business owners to select specific key executives to reward and retain.
2. Tax-Advantaged Wealth Growth
Permanent Cash Value COLI
SERP agreements often utilize Corporate-Owned Life Insurance (COLI) or Indexed Universal Life (IUL) as the underlying asset, delivering tax-deferred growth and tax-free retirement distributions.
3. 'Golden Handcuff' Vesting
Corporate Loyalty Strategy
Incorporate custom vesting schedules (e.g., 5-year or 10-year cliff vesting) to ensure top executive talent remains committed to driving long-term company growth in Tampa Bay.
SERP & Executive Plan Options
Tailored compensation, deferral, and insurance arrangements for corporate leadership:
Executive Bonus Plans (Section 162)
Tax-deductible bonus structure funding executive cash value life insurance.
The business pays bonus premiums for a permanent cash-value policy owned directly by the executive. The employer deducts the bonus as compensation, while the executive builds tax-deferred wealth.
Non-Qualified Deferred Compensation (NQDC)
Defer executive compensation to future lower-tax retirement years.
Allows key leaders to defer a portion of their current salary or bonus pre-tax into a corporate retirement account, accumulating tax-deferred until distribution at retirement.
Split-Dollar Life Insurance Plans
Corporation and executive split costs and policy benefits.
An arrangement where employer and key executive share the premium costs, death benefit protection, and cash value accumulation of a permanent life policy.
Key Person Disability & Life Protection
Insure the business against the loss of indispensable leaders.
Corporate-owned policy that compensates the business for financial losses, recruiting expenses, and revenue drops if a essential executive dies or becomes disabled.
Independent Executive Benefits Advisory
Joe Duvert brings years of corporate and individual financial insurance experience to help Tampa Bay business owners protect key leadership assets, model cash value growth, and structure long-term retention contracts.
Executive Benefits & SERP FAQ
Answers for corporate boards, CFOs, and business owners regarding SERP structures and tax treatment.
A Supplemental Executive Retirement Plan (SERP) is a non-qualified executive benefit plan designed to provide key executives and business leaders with additional tax-advantaged retirement income above standard 401(k) statutory contribution caps.
Schedule a Private SERP Consultation
Discuss executive retention goals and tax-advantaged deferral architectures with Joe Duvert.
Important SERP & Executive Benefits Disclosures
Supplemental Executive Retirement Plans (SERPs), Section 162 bonus arrangements, split-dollar, and Corporate-Owned Life Insurance (COLI) strategies are non-qualified benefit arrangements. Unlike qualified retirement plans, non-qualified plans are generally not subject to the Employee Retirement Income Security Act (ERISA) in the same manner, and their tax treatment depends on the specific structure adopted and on the individual circumstances of the employer and executive.
This website provides general information only and does not constitute legal, tax, accounting, or ERISA compliance advice. Employers and executives should consult a qualified tax advisor and/or ERISA attorney before implementing any non-qualified arrangement. Cash value growth in COLI or Indexed Universal Life (IUL) policies is subject to the terms of the policy and to the performance of the issuing carrier. All guarantees are based upon the claims-paying ability of the issuer. Duvert Insurance & Financial Services LLC is an independent agency and does not provide legal or tax counsel.