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.