Section 162 plans
The business pays a bonus that funds a life insurance policy owned by the executive. The business deducts the bonus; the executive owns a powerful, portable benefit including tax-free retirement income via policy loans.
Why owners use these in Arizona
Section 162 plans are simpler than traditional non-qualified deferred comp, work with S-corps and LLCs, and let owners reward themselves and a small group of key employees without ERISA discrimination testing.
Common questions
Is this complex to set up?
Less complex than most deferred comp plans - a properly licensed advisor can structure it in weeks.