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Executive compensation strategies

Design an executive bonus strategy

Businesses across industries — both small and large — want to recruit and retain top executives who are instrumental in growing the company. With Business Owner Life-stage Design (BOLD), you empower business owners to create competitive compensation packages.

BOLD sales support

Contact the Securian Financial Advanced Sales Team today.

1-888-413-7860, option 3

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How to choose an executive bonus strategy

There are several factors that will help determine the executive compensation arrangement that fits your client's company.

Learn how to choose

Discover our BOLD executive compensation strategies

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Executive bonus arrangements

Help your clients provide a bonus to reward and retain essential employees. Learn about the three common types.

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Split-dollar strategies

Split-dollar strategies split the costs and benefits of a life insurance policy between the employer and employee.

Learn about split-dollar
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Nonqualified deferred compensation (NQDC)

NQDC is an unsecured and unfunded promise to pay a future benefit for a select 

group of management or highly compensated employees.

Learn about NQDC

Take BOLD action

Learn how to use BOLD with clients

Your business owner clients need life-stage specific tools. ­We’ll help you find the right solution.

View the step-by-step process

Life insurance products contain fees, such as mortality and expense charges, (which may increase over time) and may contain restrictions, such as surrender periods.

Please keep in mind that the primary reason for purchasing life insurance is the death benefit.

Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.

Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.

The Policy Design chosen may impact the tax status of the policy. If too much premium is paid, the policy could become a modified endowment contract (MEC). Distributions from a MEC may be taxable and if the taxpayer is under the age of 59 ½ may also be subject to an additional 10% penalty tax.    

An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as surrender charges (deferred sales charges) for early withdrawals.

This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.

For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it is accessible to the general public.

DOFU 10-2022

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