Employee benefits with a Section 162 Executive Bonus Plan
• Employee decides what to do with the bonus
• Taxes due on the bonus can be covered by the Company 
• Potential growth of cash value may be tax deferred
More Benefits to employee:
• Employee owns life insurance and policy values
• Employee names beneficiary
• Employee can control policy use
• Little or no out-of-pocket cost
• Source of supplemental retirement income
• Proceeds may be used for estate costs