Clearly, no one asked the marketing men before coming up with this one. Who on earth thought up the name 'non-qualified deferred compensation'? Oh, it's detailed ok. But who would like anything 'non-qualified'? Do you want a 'non-qualified' doctor, lawyer, or accountant? What is worse is deferring compensation. How many people want to work to-day and receive money in five years? The problem is, non-qualified deferred compensation is a good idea; it only has a lousy name.

found itNon-qualified deferred compensation (NQDC) is a powerful retirement planning tool, specially for owners of closely-held corporations (for purposes of the article, I'm only likely to take care of 'C' corporations). NQDC plans are not qualified for 2 things; some of the income tax benefits afforded qualified pension plans and the worker safety provisions of the Employee Retirement Income Security Act (ERISA). What NQDC programs do provide is mobility. This compelling rate us site has endless novel suggestions for how to allow for it. Great gobs of freedom. Mobility is some thing capable plans, after decades of Congressional tinkering, absence. Losing of some tax benefits and ERISA conditions may seem an extremely small price to pay when you consider the numerous benefits of NQDC strategies.

A NQDC approach is a written contract between the corporate employer and the employee. The agreement covers settlement and employment which is offered in the future. The NQDC contract gives to the worker the employer's unsecured promise to cover some potential advantage in exchange for services to-day. The promised future benefit could be in one of three basic forms. Some NQDC plans resemble defined benefit plans in that they promise to pay the worker a fixed dollar amount or fixed percentage of pay for-a time frame after retirement. Another kind of NQDC resembles a definite contribution plan. A fixed volume switches into the employee's 'account' annually, often through voluntary pay deferrals, and the employee is entitled to the stability of the account at retirement. To study more, people can check out: monavie is a scam. The last type of NQDC program offers a death benefit to the employee's designated beneficiary.

The key advantage with NQDC is flexibility. With NQDC strategies, the employer may discriminate freely. The manager can pick and choose from among workers, including him/herself, and benefit just a select few. The employer can treat these opted for differently. The advantage stated do not need to follow any of the principles associated with qualified plans (e.g. the $44,000 for 2006) annual limit on contributions to defined contribution plans). The vesting schedule may be whatever the manager would like it to be. Be taught supplementary info on this affiliated article - Click here: is monavie a scam. By utilizing life insurance products, the tax deferral element of qualified plans may be simulated. Effectively selected, NQDC strategies don't end in taxable income for the employee until payments are made.

To have this flexibility both the employee and employer should give some thing up. The employer loses the up-front tax deduction for the contribution to the program. Nevertheless, the company will get a reduction when benefits are paid. The employee loses the protection offered under ERISA. However, frequently the staff involved is this concern is mitigated by the business owner which. Also you will find techniques available to give you the non-owner worker with a measure of safety. In addition, the marketing men have gotten your hands on NQDC programs, so you'll see them named Supplemental Executive Retirement Plans or Excess Benefit Plans among other names.. Browse here at the link monavie scam website to discover how to flirt with this hypothesis.