Section 162 Executive Bonus Plans as a benefit
With a 162 bonus plan, the employer effectively funds an employee’s purchase of life insurance through the payment of bonuses to the employee. This allows owners to provide critical benefits to key employees. The key element of this plan is that the employee acquires and owns all rights in the policy and the employer is able to write off the policy expense.
The employer in a 162 bonus plan does not anticipate reimbursement of any premiums paid, is not a direct or indirect beneficiary of the policy, and never owns an interest in the policy. This way, the employee gains long term benefits, no matter if employment is retained.
Creating a Section 162 Executive Bonus Plan
If you want an effective way to attract and retain top talent without the complexity and expense of a qualified program, a 162 Bonus Program may be the best solution. Section 162 Bonus Programs are a tried and true solution that help attract and retain top tier employees and key individuals. As the owner, you directly impact their saving for retirement and take care of their families.
When you are ready to offer one of the most desired and valuable benefits, schedule an assessment with Intelliplan. We will design a unique 162 strategy for your business.
