Executive Benefits

The World of Non-Qualified Plans.....

I often like to begin my presentations by sharing there are two (2) retirement systems in America.

Most people have heard of the first system.....Qualified Plans.   These consist of 401k plans, 403b plans, 457 Plans and Defined Benefit Plans. 

The second retirement retirement system is less well known... Non-Qualified PlansNon-Qualified plans are the vehicle used by Executives in Corporate America for tax planning and to reward, retain and recruit their key employees.

There are three (3) types of Non-Qualified Plans used in Corporate America:

  • Supplemental Executive Retirement Plans,
  • Non-Qualified Deferred Compensation Plans, and
  • Executive Bonus Plans under Section 162 of the IRS Code.

Non-qualified Deferred Compensation Plans is the vehicle of choice for Executives and Professionals.  Why?..... A NQDC plan operates like a 401k plan but allows unlimited contributions on a pre-tax basis so long as requirements of IRS Code Section 409A are met as to Enrollment, Funding and Distributions.

Please stay in tune as we will explore the world of Non-Qualified Plans together!