Executive Bonus Plan - Reward Key Employees with Benefits
Are you tired of losing your top-performing employees to your competitors? Do you worry about the future of your business if your key employees decide to leave? We understand that retaining key employees can be a challenge, which is why we offer Executive Bonus Plans at Living Secured Solutions Group.
An executive bonus plan is a type of compensation strategy used by businesses to reward key employees. It is a non-qualified plan that provides financial benefits to the employee while also offering some advantages to the employer.
One of the primary benefits of an executive bonus plan is that it allows the employer to reward key employees in a way that is not subject to “qualified plan limits.” This means that the employer can offer additional benefits to certain employees beyond what is allowed in traditional qualified retirement plans, such as 401(k)s.
The executive bonus plan is funded by the employer through a life insurance policy for the employee. The employee receives the benefit of the policy, which can be used for retirement planning or as life insurance protection for their family. The employer benefits by being able to deduct the premiums paid on the policy as a business expense.
It is important to note that the executive bonus plan is taxable to the employee as income. However, the employee may be able to use the cash value of the policy to pay the taxes owed on the bonus. Additionally, the employee is able to name a beneficiary for the entire death benefit of the life insurance policy.
An executive bonus plan can be a valuable tool for businesses looking to reward key employees while offering retirement and life insurance benefits. By providing additional benefits beyond what is allowed in traditional qualified plans, businesses can attract and retain top talent in their industry. Get in touch to learn more about how our Executive Bonus Plans can benefit your business and your employees.
