All of the following statements about executive bonus plans are correct EXCEPT:

All of the following statements about executive bonus plans are correct EXCEPT:




A) at the employee's death, the company receives the death proceeds free of tax.

B) they are considered nonqualified plans.

C) the employee is the policyowner.

D) the bonus paid to the employee is includable in his gross income.



Answer: A) at the employee's death, the company receives the death proceeds free of tax. 

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