Like many businesses, ABC Engineering faces a challenge in getting and keeping top talent. Its vice president of sales makes signiﬁcant contributions to the company and earns a good salary. However, his income level makes it difficult to save all the money he needs in order to maintain his lifestyle in retirement:
- He already contributes the maximum to the company’s 401(k) plan.
- He makes too much to have a Roth IRA
A solution: ABC Engineering can help him save more while also making the ﬁrm more attractive to other existing and future key employees by implementing a Principal Executive Bonus PlusSM plan ﬁnanced by life insurance.