Executive Bonus Plans

Retirement Plan Options

A qualified retirement plan is a benefit important to most individuals. Everyone wants to retire at some point in time – but when they’ll retire and how much money they’ll need at retirement is unique to their personal situation. Today, the primary source of retirement money is within qualified plans, such as: 401K plans with an employer, Simple Plans, SEP Plans, IRA’s, Annuities, and 403 (b) Plans. Most business owners look at their business as their retirement plan. Their business was built to provide a current income and to be a resource for funding their future.

As a business owner, you have some flexibility as to how you recognize income. You can take it as personal income (W-2), or retain it in your corporation or business entity. The goal is to drive excess disposable income to the lowest tax bracket.

Demographics:

Business owners who want to use company dollars to save for retirement

Max age of 60
Budget/Premium: $12,000+/year
$150,000-$500,000 in annual income

As a business owner, there are many issues that keep you up at night. Choosing the right benefit plan for you and your key employees should not be one of them. In today’s competitive workplace recruiting, retaining, and rewarding key employees is very important.

Benefit plans are often the leveraging tool that makes the difference and puts you ahead of the competition whether hiring new key people or keeping those that you have come to rely on. As you consider the many options available, expand your thinking to be certain you are also rewarding yourself in the process.

What is an Executive Bonus Plan?

There are options to consider when planning for your retirement. What is the definition of the Executive Bonus Plan? The Executive Bonus Program utilizes permanent, cash value life insurance and was created as a strategy for business owners to reward themselves and their key employees with a tax-advantaged retirement program.

DOWNLOAD SAMPLE EXECUTIVE BONUS PROPOSAL

Our proprietary proposal system takes the Executive Bonus concept and brands it to your firm. You can select the demographic images, and the color scheme will match your branded colors.

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If you have an active case, you can request a customized proposal for your clients by clicking the button below.

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Benefits of Executive Bonus Plans

Standard benefits may not be enough to attract, retain, and reward your clients’ key employees. Life insurance can provide many benefits for both employers and their employees. Executive Bonus Plans benefit:

Business owners who can’t save enough within their qualified plan
Those looking for a unique benefit that will help attract candidates to their businesses
Those who have existing key employees they want to reward and ultimately retain
Those who want to provide themselves and their employees with additional life insurance protection
Anyone concerned about future income tax rates

The business pays a bonus to the executive to fund a personal life insurance policy. The bonus is potentially deductible by the company, taxable to the executive.

The executive pays the premium to the insurance company to purchase their individually owned life insurance policy.

The life insurance policy accumulates cash values, which are used to reimburse the executive for taxes on the bonus received.

At retirement, tax-free income is paid to the executive and at death, tax-free death proceeds are paid to the heirs.

Our Premier Bonus Program

Premier Bonus is our twist on the traditional Executive Bonus Plans. Premier Bonus reimburses the taxes from the policy. Our non-qualified benefit plan is designed to not only attract, reward and retain key employees but create income tax-deferred growth, provide a tax-free retirement income and deliver income tax-free benefits at heirs upon death.

Business Owner Advantages

No set-up costs or administrative fees
No IRS forms
Not subject to IRC 409A deferred compensation rules
Flexible contribution amounts are fully deductible by the business
Selective in participation

Executives & Key Employee Benefits

Customized non-qualified benefit plan
Potential ownership
Choice in the amount and timing of income
Cash values protected in market downturns
Potential for significant tax-deferred accumulation
Income tax-free access to policy cash values
Income tax due on bonus can be paid using policy loans or withdraws

How Advisor’s Resource Company Can Help

Planning for the future financial security for your clients and their business requires thought. We work with you to establish both loan design and a funding strategy. If this situation sounds familiar, you more than likely have clients that are a perfect match for our Premier Bonus program. Let’s work together to determine the best strategies to improve your client’s financial situation.

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