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Non Qualified Deferred Compensation Plans

Today most executives save for retirement on a pre-tax basis through their company’s qualified 401(k) plans.  Unfortunately, the government-imposed limits on 401(k) plans result in executives receiving a lower proportion of benefits from qualified plans than most other employees.  For example, while most employees can save enough through qualified plans to provide the majority of their retirement income needs, the average executive only receives 20% of his/her retirement income from the 401(k) plan.  To supplement retirement income for executives, many companies have chosen to implement nonqualified deferred compensation plans.

Nonqualified deferred compensation plans are among the most popular nonqualified benefits offered to company executives today.  Such plans are offered by between 70-80% of Fortune 1000 companies.  These plans allow key executives to save for retirement on a pre-tax basis by deferring a significant portion of their compensation, over and above the dollar limit set for their qualified 401(k) plan.

Don P. Quint & Associates strive to design plans that meet the individual needs of your executives and truly create a competitive advantage.