Executive Benefits
NQDC
Deferred Compensation: A Fresh Perspective
Deferred Compensation: A Fresh Perspective
Author Executive Benefits Team
Date December 9, 2015
A Fresh Perspective on Deferred Compensation
Forbes Magazine contributor, Steve Parrish, took an interesting look at the benefits of deferred compensation in an article titled, “Delaying Today’s Compensation Could Pay Off In The Future.”
Parrish explained, in simple terms, what distinguishes qualified plans from nonqualified plans. He pointed out that many workers may not be familiar with either concept and that those who are aware of nonqualified deferred compensation plans, may incorrectly believe such plans to be relevant to only earners at the highest levels.
As the article’s author identifies, the idea behind delayed compensation is hardly new:
“Nonqualified deferred compensation (NQDC) plans have been around since the legendary boxer Sugar Ray Robinson signed a deal with the International Boxing Club of New York in 1957. And yet this popular compensation planning tool is still misunderstood.”
See the December 7, 2015 edition of Forbes/Entrepreneurs for Steve Parrish’s complete article, including case studies on these four earning scenarios:
- A professional-level employee supplements his retirement income
- A key employee wants ‘a piece of the company pie’
- ‘Tier Two’ employees get their own incentive plan
- A tax-efficient succession plan for father and daughter
Learn more about all of the customized and comprehensive solutions available through OneDigital Insurance, Financial Services and HR Consulting.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.
Securities offered through Valmark Securities, Inc. (VSI), a member of FINRA and SIPC. Investment advisory services offered through Valmark Advisers, Inc. (VAI), an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI are separate entities from OneDigital.
Unless otherwise noted, VAI/VSI is not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.