For rep/agent use only. Not for further distribution.
The Dolgoff Plan
The Dolgoff Plan is a proven
alternative to traditional
nonqualified plans. No other
NQ plan provides a business
with current and deferred
tax deductions that can
exceed the corporate
contributions — and provide
exceptional flexibility.
For rep/agent use only. Not for further distribution.
History
For rep/agent use only. Not for further distribution.
STEP 1: The Corporation moves money from cash on
hand to a brokerage account. The money used will
always be after tax dollars – since this is a
nonqualified program.
 The annual corporate contribution is used to
purchase mutual funds or other investments/assets
allocations.
 This asset is always owned and controlled by the
corporation at all times.
For rep/agent use only. Not for further distribution.
STEP 2: Using the full corporate account value as
collateral, the corporation leverages the account
and takes a margin loan.
 The brokerage firm lends its’ own money to the
corporation, the full value of the asset always
stays invested.
 This asset is always owned by the corporation
For rep/agent use only. Not for further distribution.
STEP 3: Using the loan proceeds, the corporation
provides the participant a compensation bonus –
Section 162.
 This is a tax deductible expense for the corporation.
 The corporation sends the bonused compensation to a
life insurance company.
 The insurance contract is typically a whole life
policy.
 The policy is owned immediately by the
participant.
 The company retains no ownership of the policy.
For rep/agent use only. Not for further distribution.
STEP 4: The participant has a tax liability on the
full premium. A portion of the annual premium may
be surrendered – not borrowed, to pay for the
participant’s tax liability.
 The portion of the premium being surrendered
comes from a paid up additions rider.
 Thereby giving the participant a policy with
immediate cash values, at ‘no out of pocket cost’.
For rep/agent use only. Not for further distribution.
STEP 5: The corporation is assessed an interest
charge for the margin loan – which is a second
tax deductible expense.
 The corporation is using the borrowed money for
compensation – not to purchase a life
insurance policy.
For rep/agent use only. Not for further distribution.
STEP 6: At the specified retirement age, or a
specified date of distribution, a percentage of the
net asset value of the investment account is
distributed to the participant as supplemental
retirement income.
 This is a tax deductible business expense
for the corporation.
For rep/agent use only. Not for further distribution.
STEP 7: In addition to the life insurance death
benefit, the life insurance contract can be used to
supplement retirement income on a tax favored
basis.
 As long as the policy is not surrendered, cash
values can be taken against basis or as a loan with
no income tax due.
For rep/agent use only. Not for further distribution.
The Dolgoff Plan provides
the Corporation with:
 Current and deferred tax deductions
which can exceed the Corporate
contributions
 No limits on contributions
 Full control of plan assets owned by the
Corporation — AT ALL TIMES!
 No IRS filings or approvals
 Ability to stop plan if necessary
 Ability to choose participants
 Retaining Key People — Golden
handcuffs
For rep/agent use only. Not for further distribution.
The Dolgoff Plan provides
the Plan Participant with:
 Two streams of income either at
retirement or a specific date
 Participant has immediate ownership of
life insurance policy
 No penalties for early distributions from
the investment account
 May provide supplemental income in the
event of disability
 No ‘out of pocket’ cost to participant
For rep/agent use only. Not for further distribution.
The Dolgoff Plan
will work in:
 C Corporations
 S Corporations
 Partnerships
 LLC’s*
*That are taxed only as a C-Corp, S-Corp, or
Partnership
For rep/agent use only. Not for further distribution.
The Dolgoff Plan
prospects:
Corporate clients who are:
 Established
 Financially Healthy
 Looking for additional tax deductions
 Want to provide an additional plan on a
selective basis – even if it is just the owner
 Need to Customize a plan to fit its’ needs
 Avoid the heavy cost of traditional NQ plans
For rep/agent use only. Not for further distribution.
The Dolgoff Plan has been
successfully used for:






Business Succession Planning
Supplemental/Retirement Income
Retain Key People
Buy/Sell Agreement funding
Estate Planning
Charitable Giving
For rep/agent use only. Not for further distribution.
Questions?
Investors should consider their individual risk-tolerance and investment goals. Remember, margin borrowing increases the
level of market risk, so the value of the investments can go down as well as up. The client must repay the margin loan,
regardless of the underlying value of the securities purchased. Maintenance margin requirements may change at any time
without prior notice. If the equity in the client's account falls below the minimum maintenance requirements, the client's B/D
will issue a maintenance call requiring the client to deposit additional cash or acceptable collateral. The client is not entitled
to an extension of time on a margin call. If the client fails to meet a maintenance call, the client's B/D may be forced to sell
some or all of the securities in the client's account to protect its loan, with or without the client's prior approval.
This material is for informational purposes only and is not meant as Tax or Legal advice. Clients should consult with their
individual tax and legal professionals prior to entering into such transactions. Highland Capital Brokerage does not offer tax
or legal advice.
All guarantees are based on the financial strength and claims paying ability of the issuing insurance company, who is solely
responsible for all obligations under its policies. Loans and withdrawals may generate an income tax liability, reduce available
cash value and reduce the death benefit or cause the policy to lapse.
Mutual funds are sold by prospectus only. For more information including expenses and charges, please read
the enclosed prospectuses. Please carefully consider the investment objectives, risks, charges and expenses
before investing or sending money as these factors will affect returns. The prospectus contains this and other
information about the investment.
Higher potential return generally involves greater risk, short term volatility is not uncommon when investing in various types
of funds, including but not limited to: sector, emerging markets small & mid-cap funds. Risks for emerging markets include
risks relating to the relatively smaller size and lesser liquidity of these markets, high inflation rates and adverse political
developments. Investors should carefully assess the risks associated with an investment in the fund. International fund unit
values and returns will fluctuate with market conditions, currencies, and economic and political climates where investments
are made.
For rep/agent use only. Not for further distribution. 121287 exp. 6/15