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.
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?