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Many high-level employees today are concerned
about their retirement income. They feel that they do not
have enough set aside to retire comfortably. Social security
pays little and its survival is in jeopardy. And much of the
distribution from pension and retirement plans is taxable
at ordinary income-tax rates.
Executive Bonus Plans allow a company to
help an executive fund a retirement plan. The bonus is tax-deductible
to the company and taxable to the executive. However, the
money set aside for the executive will grow tax-deferred and
will generally be distributed tax-free. The plan usually requires
no IRS approval and is not subject to qualified plan limits.
Benefits to Employer :
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Contributions tax-deductible |
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Helps with the retention of valuable executives |
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Simple, straightforward design, implementation, and
administration |
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Voluntary plan that may be terminated at any time |
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May be offered to only select employees |
Benefits to Executive :
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Plan may be custom-designed to suit executive’s
particular needs |
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Tax-deferred growth |
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Generally tax-free withdrawal |
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Policy is portable and may be maintained after termination
of plan or employment |
EPIC has particular expertise
in nonqualified bonus plans. Contact
us for further details.
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