Tax Facts

G—Split Dollar Funding of Cross Purchase Agreement

Updated: October 14, 2026 at 12:42 AM


Split Dollar Funding may be used to allow the business entity to assist the owners in purchasing the insurance policies. This could be particularly useful where there is a need to equalize premium payments between younger and older owners. The tax rules set forth in the final split dollar regulations must be carefully followed.





Split-Dollar Funding of Cross Purchase Agreement PDFDownload








Cross References – Concepts Illustrated





Executive Bonus Plan





Restricted Executive Bonus
Plan (REBA)





Non-Qualified Deferred
Compensation





Deferred Compensation
Opportunities





Split Dollar—Economic Benefit
Regime— Employer Pay All





Split Dollar (Non-equity Collateral Assignment) with Irrevocable Trust





Key Person Insurance





Reverse Key Person Insurance



Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.