Nonqualified (NQ) executive benefit plan

 

 

 

 

Nonqualified Plans

A nonqualified (NQ) executive benefit plan offers an additional way for business owners and key employees to save for retirement. Higher-paid executives may face a retirement gap. Limitations on most qualified plans make it difficult for them to ensure an adequate retirement income. Nonqualified plans can help close this gap. These solutions allow employers to tailor a plan that meets the needs of the company and a select group of key employees.

 

Qualified plans have limited amounts that can be contributed. You can use a nonqualified plan to allow key employees to save more.
 

Gaining flexibility for both you and employees

  • Simplified government reporting and disclosure rules may apply, or none at all, depending on plan design
  • Certain tax advantages or financial benefits can apply, depending on plan type and financing options
  • Not subject to contribution and participation limits

Recruit, reward and retain highly qualified employees

A nonqualified plan can:

  • Help increase your ability to recruit top talent by enhancing the attractiveness of your total benefits package
  • Help encourage loyalty among key employees by helping secure their financial futures
  • Help provide additional opportunities to reward your employees financially, based on the structure of your nonqualified plan

 

See how plan services benefit everyone

As a plan sponsor for a nonqualified retirement plan, both you and your participants will have access to premium service and optimal solutions. Details

Already working with a Third-Party administrator?

You can also unbundle your retirement plan services with The Principal to help meet your individual needs.