Nonqualified Plans
A nonqualified (NQ) executive benefit plan offers an additional way for business owners and key employees to save for retirement. Higher-paid employees may still face a retirement gap. Limitations on most qualified plans make it difficult for them to ensure an adequate retirement income. Nonqualified plans can help close this gap. These solutions allow employers to tailor a plan that meets the needs of the company and a select group of key employees.
Qualified plans have limited amounts that can be contributed. You can use a nonqualified plan to allow key employees to save more.
Gaining flexibility for both you and employees
- Simplified government reporting and disclosure rules may apply, or none at all, depending on plan design
- Certain tax advantages or financial benefits can apply, depending on plan type and financing options
- Not subject to contribution and participation limits
Recruit, reward and retain highly qualified employees
A nonqualified plan can help:
- Increase your ability to recruit top talent by enhancing the attractiveness of your total benefits package
- Provide additional opportunities to reward your employees financially, based on the structure of your nonqualified plan
- Encourage loyalty among key employees by helping secure their financial futures
Track record for various types of nonqualified plans
We provide administrative services for over 4,500 nonqualified plans, representing over 4,100 clients and nearly 55,000 participants.[1] Learn more about specific types of nonqualified plans
See how plan services benefit everyone
As a plan sponsor for a nonqualified retirement plan, both you and your participants will have access to premium service and optimal solutions. Details
Already working with a Third-Party administrator?
You can also unbundle your retirement plan services with The Principal to help meet your individual needs.
