Non-qualified Retirement Plans, sometimes called Deferred Compensation Plans, are plans that defer compensation until a later time (retirement). They are called non-qualified because they don't meet the Internal Revenue Service's requirement for favorable tax status. Thus, while a Non-qualified Plan is similar to a qualified retirement plan in that it allows participants to save for their eventual retirement, it is noticeably different in its participation, funding, vesting and non-discrimination requirements. With a Non-qualified Retirement Plan, benefits may be provided to only key employees on a selective basis. The plan sponsor, instead of the Internal Revenue Service or Congress, decides who may participate, what benefits will be provided, and how and when employee benefits will become vested.

Non-qualified Plans offer employers a number of advantages compared to qualified retirement plans, including:

• An incentive for recruiting, retaining and rewarding key employees
• The ability to single out select plan participants
• Unrestricted flexibility in determining individual benefit levels
• Continuation of existing retirement plans without change
• Minimal filing and reporting requirements

Employees find that Non-qualified plans can have unique advantages over qualified plans for them as well:

• Increased retirement income benefits
• No employee funding obligations
• No change in current compensation
• Survivor benefits during employment and/or retirement based on plan design
• The opportunity to receive additional or accelerated benefits upon a change in corporate control or ownership.

McCready and Keene administers many different types of Non-qualified Plans. To learn more about the services we offer associated with Non-qualified Retirement Plans click on a link below:

Consulting
Coordination With Other Advisors