Executive Bonus

Many high-level employees today are concerned about their retirement income and feel 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 :

• Contributions tax-deductible
• Helps with the retention of valuable executives
• Simple, straightforward design, implementation, and administration
• Voluntary plan that may be terminated at any time
• May be offered to only select employees

Benefits to Executive :

• Plan may be custom-designed to suit executive’s particular needs
• Tax-deferred growth
• Generally tax-free withdrawal
• 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.