Your Need for a Nonqualified Executive Benefits Plan

Your Need for a Nonqualified Deferred Compensation Plan

Fulcrum Partners Executive Benefits News

Your Need for a Nonqualified Executive Benefits Plan

YOUR NEED FOR A NONQUALIFIED DEFERRED COMPENSATION PLAN

Bridging the Gap …

A nonqualified deferred compensation plan, NQDC, can serve an important function in helping to fill the significant gap between the combined amount of your social security retirement benefits plus your qualified retirement benefits and the amount of retirement savings you will need in order to replace your current income.

Qualified retirement plans, IRAs, and 403(b) plans have limits on contribution amounts. In contrast, NQDC has inherent flexibility and affords greater opportunities, including 401(k) “restoration” that can help you bridge the replacement income gap.

Forty percent of highly-compensated executives admit they are concerned about the gap between their current income and their projected retirement income.”

The More You Currently Earn the Greater the Gap Nonqualified Deferred Compensation Plan

A Nonqualified Deferred Compensation Plan:

  • Permits you to defer compensation in excess of qualified plan limits on a pre-tax basis.
  • Has flexible distribution options that can allow more choices in tax planning, including permitting accessibility before you reach the age of 59½ years.
  • Restores contributions limited by IRS restrictions on qualified retirement plans.
  • Allows you to have an individualized investment strategy.
  • Is not subject to contribution/ participation limits.
  • Allows organizations to make discretionary contributions to enhance employee retention, including incentive-based contributions.
  • Has simplified government disclosure and reporting rules or no disclosure reporting at all.

Find out how a NQDC plan could change your financial future. Contact Fulcrum Partners. www.fulcrumpartnersllc.com/team/

Fulcrum Partners, LLC.
814 A1A North, Suite 307
P.O. Box 1909 (ZIP 32004-1909)
Ponte Vedra Beach, FL 32082