NQDC is a supplemental benefit that permits the deferral of earned income to a future date, often aligning with retirement when one’s taxable income is expected to be lower. NQDC provides high-income earners with enhanced savings potential beyond what qualified plans offer. Its flexible structure allows for customization, making it an effective tool for attracting top talent and promoting long-term loyalty and motivation.
As an employer, you may be considering implementing a Nonqualified Deferred Compensation Plan (NQDC) for your key employees. However, your board of directors may have some concerns regarding the cost, risk, and complexity of this plan. Don’t worry, this article provides four tips that can help you prepare for success.
These tax tables are designed to offer a quick summary of tax brackets and taxes for: personal income, capital gains, children, and both employer and personal retirement plans.
Recruiting, retaining and motivating vital employees is a constant concern for businesses regardless of the economic and regulatory climate. For business owners and human resource professionals, hiring and retaining quality employees has always been a top priority. The challenge remains as to how to reward key hires in a way that aligns well with the company’s long-term strategic goals.
Deferred compensation provides a unique savings tool for key employees and has proven retention qualities. So why is this widely used strategy in corporate America being overlooked in the banking industry?
In this video, Principal John Gagnon discusses the differences between defined benefit and defined contribution when it comes to SERP design and highlights the impact rate changes are having of these design options.
As interest rates increase, discount rates increase and these rate increases could have a major effect on what a SERP participant’s lump sum benefit will be. In this video, Principal John Gagnon addresses the impact rising interest rates are having on lump sum payouts and offers ways to adjust so that you’re not essentially encouraging an executive to retire early.
Because of the restrictive nature of the 457 rules and the addition of 21% excise tax under Section 4690, many tax-exempt organizations have looked to split-dollar life insurance as an alternative way of providing executive retirement benefits.
Synthetic equity plans can be an attractive alternative to stock options as they mimic the economic value of equity without buying or selling actual stock. Synthetic equity is often used to recruit, retain and reward top talent by providing a ownership level benefit without giving up any actual ownership of the company. In this video, Principal John Gagnon, answers the question “What is a synthetic equity plan?” and discusses a case example and why some companies may prefer this type of equity alternative over a more traditional stock option.
An LTIP is an incentive bonus plan that makes payments based on the achievement of specific goals which are generally paid three to four years after they have been earned and after satisfying the vesting requirement. In this Q&A, Principal John Gagnon addresses common concerns to help determine if an LTIP is a proper benefit choice for your organization.