Nonqualified Deferred Compensation (NQDC)
Offering Best-in-Class Benefits
Implementing an NQDC plan, which is like a 401(k) with the potential for employer matching funds, creates benefits for the company and the executives participating in the program. Cost-effectively funding this program is key to ensuring it’s a feasible option for your company. Using corporate-owned life insurance as the funding vehicle allows the company to recoup all costs associated with the program, including costs related to the lost use of capital.
Benefits for the Company
- Elevates benefits to best-in-class status, such as those found in large publicly traded companies
- Provides strong financial incentives for participants to remain with the company long-term
- Supports favorable balance sheet and income statement treatment with the ability to recover all plan costs fully
Benefits for the Executives
- Enables executives to defer income over 401(k) limits on a pre-tax basis
- Gives executives access to a diverse menu of investment alternatives similar to 401(k) options
- Allows executives to leverage enhanced planning flexibility for life events, such as a child’s college education or a vacation home, and retirement
Connect with a Trusted Executive Benefits Advisor
