Qualified Plan funding limitations often restrict retirement benefits for highly compensated executives. Non-Qualified Retirement Plans (NQRP) can help key employees supplement
these limited levels of qualified plan retirement income.
NQRP plans are generally limited to a select group of highly compensated employees. They are most often designed to be Defined Benefit (SERPs) or Defined Contribution (Deferral) Plans.
Through these plans, a series of payments are made at retirement or a predetermined future date. Participant taxation is most often similar to qualified plans – taxable on receipt. Within the
guidelines of IRS Section 409A, NQRP plans may take advantage of particularly flexible design parameters.