Deferred Compensation and Nonqualified Plans

These pages group deferred-compensation and nonqualified plan terms that readers use when comparing employer retirement benefits beyond standard qualified plans.

In this section

• Deferred Compensation
  Compensation arrangement that postpones receipt of earnings until a future date, often as part of retirement planning.
• Deferred Compensation Plan
  Plan that lets compensation be paid at a later date rather than immediately, often to shape taxes and retirement cash flow.
• Non-Qualified Retirement Plan
  Retirement arrangement that does not meet the tax-law requirements applied to qualified employer retirement plans.
• Nonqualified Deferred Compensation Plan: A Deferred Income Strategy
  A Nonqualified Deferred Compensation Plan (NDCP) allows executives to defer a portion of their income until a later date, typically retirement, providing tax benefits and customized payout options.
• Supplemental Executive Retirement Plan (SERP)
  Nonqualified retirement arrangement used to provide additional retirement benefits to key executives.