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.
Deferred comp plans can play an important role in retirement. Studies from Principal®, the No. 1 provider of NQDC plans1, show that 85% of plan participants consider a deferred comp plan most important in reaching financial retirement goals.2
Talk to your advisor about incorporating—or improving—a deferred comp plan in your benefits program.