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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.
Business owners who want to use company dollars to save for retirement
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.
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.
If you have an active case, you can request a customized proposal for your clients by clicking the button below.
If you would like to discuss this or any of our other strategies, feel free to set up a time to connect with our team.
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:
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.