Nonqualified deferred compensation plans (deferred compensation plans) allow key employees to contribute additional tax-deferred compensation (up to 100%, depending on plan design) to their savings—and allow employers to make discretionary contributions as well.
According to a November 2015 Wall Street Journal article, deferred compensation plans can play an important role in retirement. Studies from Principal®, the No. 1 provider of NQDC plans, show that 91% of plan participants call their NQDC plan the most important part of their retirement savings strategies.1
Talk to your advisor about incorporating—or improving—a deferred compensation plan in your benefits program.