Nonqualified Deferred Compensation Plans
Much of an organization’s success is dependent on its most valuable assets – its executive leadership and employees. High caliber executive talent provides invaluable expertise and experience to an organization.
Qualified plans such as a 401(k) or 403(b) have strict IRS requirements, which severely limit the amount or level of benefits available to highly compensated executives, physicians and other professionals. As a result, employers rely on executive benefits such as nonqualified deferred compensation plans to attract high caliber talent.
Offering a Nonqualified Deferred Compensation (NQDC) plan is a flexible benefit solution to supplement and complement existing qualified plans since deferred compensation plans do not have restrictions on the amount or level of benefits allowed.
- Attract, retain and motivate key executives
- Defer more pre-tax compensation than what is possible with a 401(k) or 403(b) plan