VIDEO | Non-Qualified Deferred Compensation Plans

Welcome to 401(k)ompass, a series of two-minute videos to help you manage your 401(k) more effectively by addressing current issues and challenges. It’s bonus season—are you certain you’re withholding from bonuses correctly? In this episode, Lindsay Luketic talks about one of the most frequent areas where mistakes happen: a plan’s definition of compensation. Not withholding from the proper payroll sources, like bonuses, can lead to plan errors that might become costly if not addressed. Don’t worry if this sounds familiar. Lindsay breaks down how these errors occur, why they matter and most importantly, how you can fix them before they…

Attracting and retaining the right employees remains a priority for many organizations. In our latest 401(k)ompass episode, Renn Williams shares in just 2 minutes how non-qualified deferred compensation (NQDC) plans can support these goals. Here, we explore several advantages of these plans and how they can be effectively implemented to keep key employees on board. Selecting Participants with Flexibility Unlike traditional retirement plans, NQDC plans allow employers to choose which employees are eligible, without the same non-discrimination requirements. This flexibility lets employers set conditions such as a tenure milestone before employees are vested. This approach supports a company’s goals while…