Do your business owner friends and relatives know what a Section 162 Bonus Plan is and how it can help them grow their business by attracting and retaining key talent?
Section 162 Plans are a very typical way that small business owners can bonus their key employees in order to recruit and retain top talent. It can be a TAX-FREE ROTH IRA alternative with no IRS contribution limits nor income limits.
But once an employer learns how they can supersize these bonuses — WITHOUT costing them $1 more, they’ll be anxious to learn much more.
And I say that the employee “usually” pays income taxes on the bonus because the company can actually “Double Bonus” the employee which makes the takes away the income tax owed to the IRS/State on the bonus.
The Section 162 rules allow the business to decide which employees get the bonus, so there is a lot of flexibility.
Business owners also appreciate that there is NO IRS restrictions or approval needed, no government forms or reporting and minimal administration.
Contact me to learn more about super-sizing the bonuses — without any extra cost to the employer.
By the way, you do NOT need to own a business to use this same strategy (including OPM) to save for your own future TAX-FREE retirement. Although, I would not recommend anyone else do only this, it’s 100% how I’m saving for ours.
This strategy can add $100,000’s of tax-free retirement income and may even
allow you to avoid paying income taxes on your future Social Security income.
all the best… Mark