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This specialized plan is an arrangement between you and the employer to defer the receipt of currently earned compensation. NQDC plans do not have the same tax-favored benefits of qualified retirement plans. Most NQDC plans do not have to comply with the participation, vesting, funding, distribution, and reporting requirements imposed on qualified plans by Internal Revenue Code (IRC) Section 401(a) and the Employee Retirement Income Security Act (ERISA).Since a NQDC plan is governed by a different set of requirements, they are generally not subject to ERISA requirements and are more flexible. Therefore, NQDC allows you to tailor the benefit amounts, payment terms, and conditions of the plan to both you and your employee's needs. As a result, a NQDC plan can cover you and others without regard to nondiscrimination requirements, provide less restrictive benefits to you, and can provide higher benefit amounts. In addition to its flexibility, a NQDC plan can also provide you with significant tax benefits. Unlike cash compensation, which the IRS taxes currently, you can defer taxation of benefits until they are received. Employers will generally make NQDC plans available to select employees, like you in order to avoid ERISA's requirements, and control tax consequences. These are just a few of the multifaceted concerns that apply to this plan. As an individual investor, navigating alone through the layers of complexity can be overwhelming at times. Allow our team of qualified financial advisors to guide you and implementing your plan.At Precision Financial Services Inc., we believe it is our responsibility to thoroughly inform you of your options, as well as, insolate you from any unforeseen ramifications derived from taxes or law. Our in depth knowledge and keen insight into government regulated programs will help protect your best interests. Our main objective is to be your most trusted advisor for your personal financial needs.
To speak directly with our expert, contact our office at 800-927-7190 or 973-927-6300 for immediate attention
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