An Executive Bonus $(162$ Plan$)$ is a way to reward key people in your organization. Which of the following best describes the concept of an Executive Bonus $(162$ Plan$)?$

$4$ points

Save An

A qualified plan under which the employer owns, pays, and is the beneficiary of a permanent life insurance policy on the life of a key employee.

A non$-$qualified plan under which the employee owns a permanent life insurance policy on his or her life. The employer pays the life insurance premium by means of a bonus paid to the executive.

A non$-$qualified plan under which the employer owns, pays, and is the beneficiary of a permanent life insurance policy on the life of a key employee.

A qualified plan under which the employee owns a permanent life insurance policy on his or her life. The employer pays the life insurance premium by means of a bonus paid to the executive.