|
|
|
AN EXECUTIVE BONUS PLAN
|
What it is:
- For the executive ... employer paid life
insurance as a fringe benefit at little or
not cost.
- For the employer ... an executive benefit
plan paid with fully deductible funds (Bonus
deductible by employer unless employee is
S-corporation shareholder, sole proprietor,
or an employee/partner in a partnership.)
How it works:
Advantages:
- Provides life insurance on and for the use
of key employee
- Allows employer flexibility - no rules or
limits on participation
- Can be designed to cost the employee nothing
- Bonus to pay premiums is deductible by a
C-corporation employer
CONCEPTS INDEX
|
|
