Nonqualified Deferred Compensation (NQDC) Plans

Close your savings gap to gain an extra edge.

A nonqualified deferred compensation (deferred compensation) plan from Principal® allows you, as a highly compensated employee, to save for retirement above and beyond qualified plan limitations and restrictions and bridge the retirement gap.

Deferred compensation plans offer a tax-deferred option to supplement your existing qualified employer-sponsored plan, such as a 401(k) plan.

  • Lower your current taxable income by more than just your 401(k) or 403(b) contributions—and further reduce your overall tax liability.
  • Accumulate more tax-deferred earnings over time, closing the gap between the retirement income you want and your 401(k)- or 403(b)-only savings rate.
  • Design an individual investment strategy that matches your goals.
  • Get the freedom to withdraw before age 59½ with no IRS penalty.

Does your employer offer a deferred compensation plan? Talk to your employer to find out more.   

Feel more confident about your retirement readiness.

A 2014 survey of deferred compensation plan participants showed that 9 out of 10 consider their deferred compensation plans to be the most important factor in their retirement confidence.

And with Principal, you can feel secure that your plan is managed by the No. 1 service provider of DB pension plans.1

Is your deferred compensation plan administered through Principal®?

Access your account information online.

Help to bridge the retirement gap

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1 PLANSPONSOR DB Administration Survey, May 2018.