Advantages of a Nonqualified Plan
Your Advantages
You benefit because a nonqualified plan:
- Isn't subject to contribution and participation limits
- Lets you choose which employees you want to participate in the program
- Helps tie key employees to your business
- Has simplified government reporting and disclosure rules
Employee Advantages
Plan members benefit because a nonqualified plan allows them to:
- Help bridge the retirement income gap created by the shortfall of their 401(k) plan savings and Social Security benefits and their income replacement goals
- Contribute as much as they want to the plan; there are no current restrictions as to how much you or your key employees can save
- Defer taxes on contributions and their earnings until the plan pays benefits
