Nonqualified Deferral Plans (NQDPs) are designed for a company's key executives, with the purpose of picking up where 401(k) and other qualified asset accumulation plans leave off. These plans offer the same tax advantages of tax-deferred long term savings, as well as the familiar look and feel of 401(k) plans. They address the fact that qualified plan limitations severely impact a highly compensated executive's ability to accumulate a comfortable asset base for retirement, and allow eligible participants to delay taxation on current income as well as on the earnings. All distributions are fully taxable when received by the participant, usually commencing at retirement, when income tax rates may be lower than during employment.
Our Web site is designed to provide information and services to any organization or individual having an interest in an NQDP plan. This interest may range from a general query about NQDP's to interactive, online account management by plan participants.
The information contained on this site is general in nature and should not be considered legal or tax advice. This information is provided for general educational purposes. The facts of your particular situation, and developments in applicable laws, rules and regulations or the interpretation thereof, may affect the information as it pertains to you. You should consult with your attorney or tax advisor regarding your specific legal or tax situation.