We will consult with you to develop strategies for rewarding and retaining management and key employees in your company. Often, companies will use a non-qualified deferred compensation plans (NQDC) to allow a select group of executives to defer income beyond the limits imposed by qualified plans.
Executive Bonus Plans
An Executive Bonus Plan is a voluntary, non-qualified benefit plan that can be an ideal way for business owners to take after-tax distributions from the company and grow the investments tax-deferred, and then take tax-free distributions in the future (in retirement, for example).
- Bonuses serve to motivate executives to reach important goals for the ongoing growth and success of your business
- They send a clear message to employees that you value their contributions and talents, helping to engender loyalty
- The link between bonuses and goal attainment can have significant advantages for your business
Learn about Executive Bonus Plan Advantages for you and your key employees, including:
- Ease of set-up and administration
- Bonuses are tax-deductible for your business
- Full discretion in selecting plan participants
- No IRS approval required
Learn why an Executive Bonus Plan may be the right solution for retaining key executives and maintaining your competitive edge: Read our Executive Bonus Plan Case Study
Executive Nonqualified “Excess” Plan
A non-qualified excess plan is a non-qualified deferred compensation plan that allows executives to defer pre-tax income in “excess” of qualified plan limits – potentially up to 100% of compensation. These plans are based on a contractual agreement between the employer and the executive(s) that results in the executive foregoing current compensation in exchange for a future benefit.
Executive Nonqualified Defined Benefit Plan
A nonqualified defined benefit plan is a deferred compensation plan where the employer promises to provide a supplemental retirement benefit for a select group of management or highly compensated employees. The company can choose to informally finance the future obligation or leave the obligation unfinanced.