Restricted Executive Bonus Arrangements (REBA) Explained
A standard Section 162 executive bonus plan gives the employee immediate, unrestricted ownership of a life insurance policy — which is great for rewarding...
Read moreWhat Type of Life Insurance Is Best for a Section 162 Executive Bonus Plan?
Once a business decides to move forward with a Section 162 executive bonus plan, one of the most consequential decisions is which type of...
Read moreWhat Is a Double Bonus Executive Bonus Plan?
One of the most common questions that comes up once business owners understand the basics of a Section 162 executive bonus plan is: doesn’t...
Read moreSection 162 Executive Bonus Plan Example: How the Numbers Work
Abstract explanations of how a Section 162 executive bonus plan works only go so far. Seeing actual numbers — even hypothetical ones — makes...
Read moreHow Much Does a Section 162 Executive Bonus Plan Cost?
Cost is usually the first practical question business owners ask once they understand how a Section 162 executive bonus plan works. Unfortunately, there’s no...
Read moreSection 162 Executive Bonus Plan Rules, Requirements, and Eligibility
Compared to qualified retirement plans, Section 162 executive bonus plans have remarkably few formal rules. There’s no IRS approval process, no minimum coverage requirements,...
Read moreSection 162 Executive Bonus Plan Tax Rules Explained
The tax treatment of a Section 162 executive bonus plan is actually straightforward once you separate it into its individual pieces: the business’s deduction,...
Read moreSection 162 Executive Bonus Plan Pros and Cons
Any compensation strategy has tradeoffs, and a Section 162 executive bonus plan is no exception. It’s a genuinely useful tool in the right situation,...
Read moreSection 162 Life Insurance: How It Works for Executives and Key Employees
The life insurance policy is the actual mechanism that makes a Section 162 executive bonus plan work — the bonus is just the funding...
Read moreWhat Is a Section 162 Executive Bonus Plan?
If you’ve been researching ways to reward a key employee without offering equity or setting up a complicated retirement plan, you’ve probably come across...
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