Loan Interest

• Pay Loan Interest – Assumes that the Employee will pay for the interest due on the Loan Based Split Dollar Plan using an out-of-pocket expense.
• Accrue Loan Interest – Assumes that the Employee will accrue any interest due on the Loan Based Split Dollar Plan.
• Report As Imputed Income – Assumes that the Employer waives the loan interest due on the Loan Based Split Dollar plan and reports it as imputed income. The Employee will be responsible for paying any tax due on the imputed income.