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executive bonus plans are a good way for business owners or companies to provide supplemental retirement benefits for themselves or select employees section 162 of the IRS tax code allows business owners to make tax deductible annual bonuses to themselves or key employees the recipient of the bonus usually pays income taxes on the bonus compensation and then purchases a specifically designed cash value life insurance policy at retirement these policies will provide the owners and/or executives with substantial amounts of non-taxable income thousands of smart businesses take advantage of section 162 every year but my clients want to supersize this powerful retirement benefit by using OPM they can safely leverage their bonuses by three times to dramatically increase their future tax-free income and legacy call me to explore this compelling strategy to supersize your tax-free retirement income and lifestyle