A nonqualified deferred compensation plan is designed to help top talent save beyond 401(k) plan limitations for retirement and other savings goals, while helping the organization recruit, retain, and reward them.
Here’s How Deferred Compensation Plans Work
A deferred comp plan is a type of savings vehicle an organization provides to select key employees. Participants can defer a portion of their annual compensation or bonuses into the plan before taxes. And the organization promises to pay that money to the employees at a future date, plus any earnings or additional contributions the organization may offer.
How a company informally finances its plan can help accomplish these goals – whether the company uses corporate owned life insurance (COLI) or taxable investments, or company cash flow.
Helping key employees save additional dollars for the future with a deferred comp plan is a great way for companies to tie these employees to the organization, while keeping it strong and successful.
Read or download these Reports for more information on Deferred Compensation Plans
- Protect Your Clients by Helping Them Look Out for Their Key Employees
- Recognize and Motivate Key Employees: Nonqualified Incentive Bonus Plan
- How Deferred Comp Plans Can Help Pass-Through Businesses
- Key Employee Benefits
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