Obviously, no one asked the marketing men before coming up with that one. Who on earth thought up the title 'non-qualified deferred compensation'? Oh, it's detailed ok. But who wants something 'non-qualified'? Are you wanting a 'non-qualified' doctor, lawyer, or accountant? What is worse is deferring payment. Just how many people wish to work today and get paid in five-years? The thing is, non-qualified deferred compensation is a good idea; it just includes a name.
Non-qualified deferred compensation (NQDC) can be a strong retirement planning tool, especially for owners of closely held corporations (for purposes of the article, I'm only likely to cope with 'C' corporations). NQDC plans aren't qualified for two things; a few of the income tax benefits given qualified retirement plans and the worker protection provisions of the Employee Retirement Income Security Act (ERISA). What NQDC programs do offer is mobility. Get further on the affiliated site - Hit this hyperlink: take shape for life review. Great gobs of flexibility. For supplementary information, you should gander at: internet marketing. Mobility is something capable plans, after decades of Congressional tinkering, absence. Visit Our Site includes more about the meaning behind it. The loss of some tax benefits and ERISA conditions might appear an extremely small price to pay considering the many benefits of NQDC programs.
A NQDC program is a written agreement between the corporate employer and the staff. The contract includes employment and settlement which will be presented later on. The NQDC agreement gives to the worker the employer's unsecured promise to pay some future benefit in exchange for services to-day. The promised future advantage might be in one of three common forms. Some NQDC plans resemble defined benefit plans in that they promise to cover the worker a fixed dollar amount or fixed proportion of pay for a time period after retirement. Another kind of NQDC resembles a definite contribution plan. A fixed amount switches into the employee's 'account' every year, often through voluntary wage deferrals, and the employee is eligible for the stability of the account at retirement. The final type of NQDC strategy supplies a death benefit to the employee's designated beneficiary.
The key benefit with NQDC is mobility. With NQDC programs, the employer could discriminate openly. The manager could pick and choose from among employees, including him/herself, and gain only a select few. The employer can treat these chosen differently. The power stated do not need to follow the principles related to qualified plans (e.g. the $44,000 for 2006) annual limit o-n contributions to defined contribution plans). The vesting schedule can be regardless of the company would love it to be. By utilizing life-insurance products and services, the tax deferral element of qualified plans might be simulated. Precisely drafted, NQDC strategies don't end in taxable income for the worker until payments are made.
To obtain this flexibility the employer and employee should give some thing up. The employer loses the up-front tax deduction for the contribution to the program. Nevertheless, the employer will get a deduction when benefits are paid. The security is lost by the employee provided under ERISA. But, often the worker involved is this concern is mitigated by the business owner which. Also there are techniques open to provide the non-owner staff with a measure of safety. In addition, the marketing folks have gotten your hands on NQDC plans, therefore you'll see them named Supplemental Executive Retirement Plans or Excess Benefit Plans among other names..
文章定位：
