Going the extra mile to reward and retain your most important executives
Smart companies know the significance of providing competitive compensation packages to their executives and key employees. The most common reason executives leave companies is compensation. A non-qualified deferred compensation plan is a strategy you might consider to provide additional benefits to key people.
Nonqualified retirement plans differ from qualified retirement plans in that they do not meet the requirements of the Internal Revenue Code or ERISA. These plans may be discriminatory amongst employees and are typically used to provide deferred compensation plans for key personnel. They do not receive the same tax treatment as qualified plans. For example, employers receive no tax deduction until the employee receives proceeds from the plan. A conversation about your goals might reveal if one of these types of plans is a fit for your company:
- Executive Bonus Plans
- Split Dollar Life Insurance Arrangements