Estelle Peterson is a key employee of Paxton Marketing, Inc….

Estelle Peterson is a key employee of Paxton Marketing, Inc. She is covered by a key employee life insurance policy and has asked you, her financial advisor, to explain the tax implications that she faces due to this policy. You tell her that there is no income tax due from her or her estate when

Tom Smyth owns a business that sponsors a cross-tested defin…

Tom Smyth owns a business that sponsors a cross-tested defined benefit plan, but he wants to adopt a simpler alternative that would still allow a current tax deduction and be easier to explain, design, and administer. Tom’s best alternative, given his concerns, would be