Nonqualified Deferred Compensation (NQDC) Plan Solutions

Improve your executive benefits program with a NQDC plan

The success of every business depends on its employees and must invest a significant amount of time and money to recruit and retain those employees. USI Consulting Group (USICG) understands the challenges employers face and our team of experts can help differentiate your company with our NQDC plan solution.

Your top challenges

Stand out in a competitive workforce	Retain and reward top employees	Offer flexible tax advantages	Create an efficient solution to help offset costs

In addition, your employees are often at a disadvantage when saving for their retirement because of limitations on the amount of compensation they are allowed to defer due to IRS limits. Additionally, highly compensated employees can also be impacted by the results of the plans’ annual anti-discrimination testing that is required to be performed.

A solution to all of the challenges described above can be found in a NQDC plan.

What is a NQDC?

An NQDC plan is a means by which an employer can provide their top employees with a way to generate significant wealth by allowing their assets (wages, bonuses, etc.) to compound tax-deferred over a specific amount of time. Employers can design the NQDC plan benefit in a variety of ways that are beneficial to both the employees and the company, to ensure it meets corporate objectives and so that contributions to the plan can be aligned with corporate performance triggers. There are a variety of NQDC plan designs and USICG will help guide employers to the best fit.

A win-win for employers and employees

Currently, the deferral limits of the typical 401(k) plan will not meet the needs of highly compensated employees. The ability to accumulate for retirement on a tax-favored basis makes an NQDC plan extremely attractive. Key advantages include:

• Amplifies your ability to recruit, reward and retain Executives and top employees that are critical to the success of the business in the current extremely competitive environment
• Allows top employees to overcome the limitations of qualified retirement plans and defer additional amounts of current salary, so they can close
  the “retirement gap”
• Offers employees pre-tax wealth building accumulation
• Delivers a flexible, unique and fully customizable solution structured to the mutual advantage of the employer and employee

USICG has helped clients understand, design, implement, fund and administer NQDC plans for nearly five decades. We will analyze funding options and build a plan that works for you.