Who can sponsor a nonqualified Life Rewards plan?
Any company can establish a nonqualified Life Rewards plan. C corporations best complement the tax advantages of a nonqualified plan; however, nonshareholders of an S corporation also benefit. Other entities such as a limited liability company, limited liability partnership, sole proprietorship or partnership may also sponsor a nonqualified plan for select nonowner executives. Life insurance? Life insurance is the most commonly used informal funding vehicle for nonqualified benefits because of the death benefit it provides and its tax-advantaged status. Your company will be the owner and beneficiary of the life insurance policy, which insures the executive participant in the plan. Return to Business Solutions Golden Executive Bonus Arrangement (GEBA): A compensation tool designed to reward select executives with cash value life insurance Attracting, motivating and retaining key executives takes a competitive compensation package that includes more than a salary and a bonus. Until recen
