Non-Qualified Deferred Compensation Plans

Employee benefits today are more important than ever in helping companies attract and retain top talent and in establishing a strong employer-employee relationship. Statistics show that 45% of employees plan to look for new employment once the economy improves. They’re looking for more value and benefits from their employees, whether it’s in the form of group coverage, voluntary benefits, flex time, or retirement planning.
Sinclair Risk & Financial Management can help you cement loyalty with your top executives through the implementation of non-qualified deferred compensation plans.
A non-qualified deferred compensation plan is used by businesses to supplement existing qualified plans, providing an extra benefit to key personnel and highly compensated employees. In essence, employers contractually agree to make payments to employees at a future date, such as retirement or pre-retirement death or disability.
An employee can either select to receive less in current salary and bonus compensation than he or she would otherwise receive, deferring compensation until a future tax year. Or, an employer can fund the benefit without reducing current compensation in order to fund future payments.
Employers through these plans can contribute more to certain employees’ benefits including their own, and are not subject to contribution limits or the testing requirements of qualified plans. All contributions grow tax-deferred until withdrawn. Additionally, an employer can determine eligibility, and distributions are not tied to retirement.
Innovative approaches for keeping top talent.
Sinclair offers several alternatives to help you in attracting and keeping key executives. Please give our financial planning advisors a call at 203.265.0996 to discuss what will work for you and your company. You can also email us, or return the form on this page.