Is the Section 162 Executive Bonus Plan Just Whole Life Insurance?

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Executive bonus plans are not taxed.. Lets not give out false infomation

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“Under a Section 162 Executive Bonus Plan, the employee takes each year’s bonus into taxable income as received or when the premium is paid by the company. Some companies will gross-up or pay an additional bonus for projected income taxes and payroll taxes attributable to the bonus. Since the employee owns the life insurance policy or non-qualified deferred annuity, they will have access to policy values.” From lad-dev.americannational.com/content/dam/lad/advanced-sales-resources/business-planning/10278-162.pdf “Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vacation trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the FMV of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it isn’t taxable until you receive it or it’s made available to you.” From www.irs.gov/publications/p525#en_US_2023_publink1000229094 “All wages, salaries, bonuses, commissions, and tips are taxable, even if they are not reported on Form W-2.” from apps.irs.gov/app/understandingTaxes/teacher/hows_mod02.jsp