KAI-ZEN AND TRI-ZEN STRATEGIES

• Kai-Zen and Tri-Zen both are structured to allow lenders to add 3x more cash over and above what either the individual client, the employer, or employee, chooses to put into the plan.

• Tri-Zen is a customized incentive strategy that offers all these benefits in one of the most tax-advantaged methods available today. Tri-Zen is suitable for C Corporations and not-for-profit organizations.
• With Tri-Zen Money Goes in Pre-Tax and comes out Tax-Free. Tri-Zen premiums are pre-tax because they are loaned from the employer to the employees trust. The loans are not taxable to the employee because they will be paid back by the insurance. The full loan goes into the policy without any income or payroll tax.
• Traditional benefits are a huge expense to most employers, and Tri-Zen allows employers to offer the ideal benefit plan to their key personnel without increasing costs.
• In fact, with Tri-Zen all the funds spent are an asset to the company. From an accounting perspective it is not a form of compensation to the employee. Technically it is a loan to the employee and as such is not an expense but an asset.
• The loan will be repaid by life insurance when the employee expires. Because it is a loan it is NOT a cost and so does not reduce earnings, nor does it trigger FICA costs.

From a tax code perspective this comes under the tax code called Loan Regime Split-Dollar   §1.61-22 and § 1.7872-15.

• With most of the money required to finance the strategy coming as a loan from a bank, Tri-Zen brings substantial new money to the table with 3:1 leverage.
• This results with the employee or individual client, having almost double the payment into the plan, which the bank then leverages up once more. Ultimately, this provides the employee depending on the individual case, with an average minimum 60% x 100% or more tax-free retirement income as a result of a Savings Plan with 3 x 1  Banking Leverage.
• ​​​Tri-Zen Split Dollar Plans and Kai-Zen Plans are not subject to ERISA Rules.

• Kai-Zen and Tri-Zen both are structured to allow lenders to add 3x more cash over and above what either the individual client, the employer, or employee, chooses to put into the plan.

• Tri-Zen is a customized incentive strategy that offers all these benefits in one of the most tax-advantaged methods available today. Tri-Zen is suitable for C Corporations and not-for-profit organizations.
• With Tri-Zen Money Goes in Pre-Tax and comes out Tax-Free. Tri-Zen premiums are pre-tax because they are loaned from the employer to the employees trust. The loans are not taxable to the employee because they will be paid back by the insurance. The full loan goes into the policy without any income or payroll tax.
• Traditional benefits are a huge expense to most employers, and Tri-Zen allows employers to offer the ideal benefit plan to their key personnel without increasing costs.
• In fact, with Tri-Zen all the funds spent are an asset to the company. From an accounting perspective it is not a form of compensation to the employee. Technically it is a loan to the employee and as such is not an expense but an asset.
• The loan will be repaid by life insurance when the employee expires. Because it is a loan it is NOT a cost and so does not reduce earnings, nor does it trigger FICA costs.

From a tax code perspective this comes under the tax code called Loan Regime Split-Dollar   §1.61-22 and § 1.7872-15.

• With most of the money required to finance the strategy coming as a loan from a bank, Tri-Zen brings substantial new money to the table with 3:1 leverage.
• This results with the employee or individual client, having almost double the payment into the plan, which the bank then leverages up once more. Ultimately, this provides the employee depending on the individual case, with an average minimum 60% x 100% or more tax-free retirement income as a result of a Savings Plan with 3 x 1  Banking Leverage.
• ​​​Tri-Zen Split Dollar Plans and Kai-Zen Plans are not subject to ERISA Rules.