Your 2025 Bonus

Turn it into compounding capital before the tax check clears. Three moves, 72 hours.

Product identification: this page discusses participating whole life insurance. It is insurance, not a bank account or investment.
We are not a bank: “The Infinite Banker” is an education brand. We do not accept deposits, and we do not offer FDIC- or NCUA-insured products.
Guaranteed vs non-guaranteed: dividends and other non-guaranteed elements are not guaranteed and may change. Any values shown that include non-guaranteed elements are for education only.

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The Check Just Hit

Your year-end bonus landed. $75,000. $150,000. Maybe $300,000. The number doesn’t matter as much as what happens in the next 72 hours.

Most high earners follow the same pattern: bonus hits checking, sits for weeks, eventually moves to brokerage, gets invested at whatever the market is doing that day, taxes paid in April. Six months later, the momentum is gone.

There’s a faster, cleaner path.

The Three-Move Framework

Move 1: Test your MEC limits (Day 1)

Contact your policy administrator and request immediate MEC testing for your current policy year. Most carriers return results within 24 hours.

You need to know: maximum PUA deposit allowed without crossing into MEC territory, remaining capacity after current year funding, and next year’s capacity if bonus spans policy anniversary.

Don’t skip this step. A MEC violation destroys your tax-advantaged loan access permanently. Test first, deposit second.

Move 2: Route maximum to policy (Day 2)

Once you have MEC clearance, move the approved amount directly from checking to the policy as a Paid-Up Addition.

Why speed matters: every day in checking earns nothing. Every day in the policy starts compounding. Early January deposits capture a full year of dividend credits.

Practical execution: request wire instructions from carrier, initiate transfer same day, confirm posting within 48 hours, verify updated cash value within one week.

Move 3: Plan the tax payment (Day 3)

Your bonus is taxable. The tax bill is coming whether you like it or not.

Option A: Route full bonus to policy, pay taxes from regular income or savings. Maximizes compounding base.

Option B: Calculate tax liability, set aside that amount, route net proceeds to policy. Conservative approach.

Option C: Deposit full bonus as PUA, take small policy loan to cover taxes. Keeps everything inside the system. Most aggressive.

Most clients choose Option A or B. Option C works if you have existing cash value and want maximum policy funding.

Why This Beats the Brokerage Default

Compare two scenarios with a $100,000 bonus:

Scenario A: Traditional approach

Sits for 30 days, transferred to brokerage, market up 2%, federal and state taxes paid in April ($35,000), net after-tax working capital $65,000 plus small gain.

Scenario B: Policy PUA approach

MEC tested same day, $100,000 routed to policy as PUA within 48 hours, cash value increases immediately, available via loan in 5 to 7 days, taxes paid from other cashflow, full $100,000 compounding at 4% to 5% dividend rate.

Year one advantage: $3,000 to $4,000 in additional growth versus taxable brokerage. Compound that edge over 10 or 20 years and the gap widens dramatically.

The January Window

If your bonus hits in December or early January, you have a strategic advantage: two policy years of MEC capacity available.

Example: Policy anniversary March 1, bonus received January 15. Current policy year has $80,000 MEC capacity remaining. Next policy year (starting March) has $120,000 capacity available. Total capacity: $200,000 across the window.

For a $150,000 bonus: deposit $80,000 in January (uses current year capacity), deposit $70,000 in March after anniversary (uses next year capacity). Entire bonus deployed without MEC violation.

Timing is everything. Miss the window and you’re stuck waiting another year for capacity to refresh. Early-year funding also gives you a full year of dividend participation versus prorated dividends for mid-year or late-year deposits.

Multiple policies give you even more capacity. Some clients maintain two or three policies specifically to absorb larger bonuses. Each policy has independent MEC limits. A $150,000 bonus can be fully absorbed across three policies in one move without splitting across years.

Real Client Execution

Profile: Executive, $180,000 year-end bonus, received December 20th.

Existing setup: One policy, $95,000 MEC capacity remaining this year, policy anniversary February 1.

Action taken:

December 21: Requested MEC test, confirmed $95,000 safe this year

December 22: Wired $95,000 to policy as PUA

February 2: Requested MEC test for new policy year, confirmed $110,000 capacity

February 3: Wired remaining $85,000 as PUA

Total timeline: 45 days to deploy entire bonus.

Result: $180,000 in policy compounding, no MEC violation, taxes paid from Q1 cashflow, cash value accessible via loan within days if needed.

Client repeated this process the following year with another $190,000 bonus. Two years, $370,000 added to the system. All tax-advantaged. All accessible.

Your 72-Hour Checklist

Day 1:

• Confirm bonus amount and deposit date

• Contact policy administrator for MEC testing

• Request current year and next year capacity limits

• Calculate estimated tax liability

Day 2:

• Receive MEC test results

• Initiate wire or ACH to policy (up to approved limit)

• Confirm transfer initiated

Day 3:

• Verify deposit posted to policy

• Plan tax payment strategy (cashflow, loan, or reserve)

• Document updated cash value for records

Bonus moves fast when you have a system.

The Bigger Picture

This isn’t just about one bonus. It’s about turning lumpy income into compounding momentum.

Year one: $100,000 bonus routed to policy.
Year two: $120,000.
Year three: $130,000.
Year four: $140,000.

Four years later, you’ve moved $490,000 into a tax-advantaged compounding structure. That capital is growing at 4% to 6% annually, accessible via loan anytime, protected from market volatility, building death benefit for heirs, and funding your eventual retirement income.

Most executives let bonuses evaporate into lifestyle inflation or sit in taxable accounts. You’re building a private wealth system.

If you don’t have a policy yet, you have two options: launch one now and deposit next year’s bonus, or design specifically around your bonus pattern with aggressive PUA structure and MEC limits calculated for your typical windfall. Some of our best clients are bonus-dependent executives who use whole life as their bonus repository. Base salary covers lifestyle. Bonus feeds the system.

This system works best for high earners with existing liquidity and the capacity to fund meaningfully each month. If that’s you, complete intake and book your Discovery call.

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Invitation to inquire: The information provided is an invitation to inquire about our services and is not an offer to sell insurance or securities. Renewal, cancellation, termination: Policies require ongoing premium payments. Non-payment may result in lapse or termination. Surrendering a policy may result in fees and tax consequences. Licensing scope: We are licensed insurance professionals. We do not provide legal, tax, or investment advice. Consult your advisors. Loans reduce cash value and death benefit: Outstanding loans and interest reduce available cash value and death benefit. Loans are not required to be repaid during the insured’s lifetime, but unpaid loans will reduce death benefit. Comparisons are educational: Any comparisons to other financial products are for educational purposes only and are not guarantees of performance. “Infinite Banking Concept®” is a registered trademark of Infinite Banking Concepts, LLC. The Infinite Banker is independent: We are not affiliated with or endorsed by Infinite Banking Concepts, LLC.