By Dennis P. Mullen, ChFC®, CLTCManaging Director, Fifth Avenue Financial
Advisors often look for new and creative ways to help corporate clients attract and retain employees. Sometimes, however, the best solutions aren’t new at all. Such is the case with (IRS) Section 162 Executive Bonus Programs.
Section 162 Bonus Programs offer life insurance for select key employees, with premiums paid by the employer in the form of a bonus. Here’s why you may want to introduce this carve-out concept, not as the next big thing, but a tried and true solution for corporate clients:
If your clients want a way to attract and retain top talent without the complexity and expense of a qualified program, a 162 Bonus Program may be an attractive alternative. A Section 162 Bonus Programs is a tried and true solution that helps companies attract and retain top talent and key employees save for retirement and take care of their families. These programs also work well with closely-held businesses, where the owner wants to provide key employees with a valuable benefit without impacting company ownership or control.
Dennis P. Mullen, ChFC®, CLTC is a Managing Director at Fifth Avenue Financial who has nearly 30 years’ experience assisting financial service professionals assist their clients establish the financial security they want for themselves, their families, and their businesses. email@example.com | 212-536-6030CRN202005-30369