The stringent regulations governing 401(k) and other qualified plans may make it difficult to provide executives and highly compensated employees with meaningful opportunities for tax-deferred savings. The limit on voluntary employee deferrals, the limit on overall plan contributions, as well as the need to avoid becoming top-heavy, all combine to limit your ability to reward key employees.
A potential solution to this problem may be a non-qualified retirement plan. These plans offer more flexibility, allowing you to provide a number of additional benefits to your key employees without jeopardizing the qualified status of your company's 401(k).
Some non-qualified plans simply allow key employees to defer more of their income than they would be allowed to contribute to their 401(k), while others allow you to provide them with tax-deferred bonuses.
There are numerous ways that non-qualified plans can be structured and funded. Our Retirement Plan Relationship Managers will analyze your company's needs and recommend appropriate strategies. We will then implement that strategy and provide ongoing administrative support.
Non-Deposit Investment Services are not insured by FDIC or any government agency and are not bank guaranteed. They are not deposits and may lose value.