Non-Qualified Deferred Compensation (NQDC)

Because of government-imposed limits on the amounts that can be contributed to a Qualified Plan, 401(k), and Profit-Sharing plans, the opportunity exists for owners and key executives to design a NQDC plan and defer pre-tax earnings, enjoy tax-deferred growth, have a choice of investment options, and receive a lifetime tax-free retirement income.

 

The advantages of these plans to the participant are:


  • Ability to defer pre-tax earnings.
  • Opportunity to select from an investment menu.
  • Potential to reduce market volatility without a significant reduction in returns.
  • Flexibility to withdraw income prior to age 59 1/2 without penalty.
  • Ability to capture lost matching 401(k) contributions.