Delaying Today’s Compensation Could Pay Off In The Future

via Forbes

Nonqualified deferred compensation (NQDC) plans have been around since the legendary boxer Sugar Ray Robinson signed a deal with the International Boxing Club of New York in 1957. And yet this popular compensation planning tool is still misunderstood.

Some think it’s merely an extension to 401(k) plans, and others think it’s only a tool for rich, C-suite pinstripers on Wall Street.

For a few readers, this may even be the first time you’ve heard of such a plan. In short, nonqualified deferred comp allows an employee to save beyond government “qualified” limits such as those in a 401(k) plan ($18,000 for 2016). Hence the “nonqualified” term..

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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