Non-Qualified Plans & Services
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.
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.
Non-Qualified Plan Services
To learn more about the services we offer associated with Non-qualified Retirement Plans click on a link below:
McCready and Keene's Consulting staff can assist you and your counsel if you have or are setting up a non-qualified plan. If that plan needs an ASC disclosure (accounting disclosure for your financials), then we can assist. If that plan is a non-qualified deferred compensation plan and we also have your 401(k) plan (over $5 million on our trust platform), then we can provide a mirror-plan for your non-qualified deferred compensation plan.
After you make a decision about your Non-qualified Plan, please contact us to see if there are services that we can do for your non-qualified plan.
Our clients find that our ability to work seamlessly with their advisors, including their CPAs, attorneys and financial advisors, means they save time and money, plus they avoid potential mistakes that can bring unwanted attention from the IRS or the Department of Labor.