Non-qualified Deferred Compensation (NQDC)
Many employees these days are taking a proactive stance on retirement planning – seeking innovative ways to ensure that they will have sufficient retirement income to maintain their standard of living. However, highly compensated employees investing in their future may encounter some obstacles:
- Qualified retirement plans have several specific rules concerning highly compensated employees, making it difficult for them to accumulate sufficient savings to maintain their standard of living.
- Additionally, employers are restricted on how much they can contribute and deduct to defined contribution plans.
Fortunately, a properly designed executive benefit plan can meet the needs of both the employer and employee.