Nonqualified plan

(redirected from Nonqualified Plans)

Nonqualified plan

A retirement plan that does not meet the IRS requirements for favorable tax treatment.

Nonqualified Plan

An annuity or pension plan that one buys individually rather than through an employer. Nonqualified plans are not subject to the same restrictions as qualified plans. As a result, withdrawal penalties are smaller or non-existent, and one may continue to make contributions to a more advanced age (sometime until the annuitant is over 80). In the United States, specific restrictions on nonqualified plans are set at the state level. The IRS does not regulate them; as a result, contributions are not tax-deductible, but earnings still are.
References in periodicals archive ?
Our comprehensive suite of employee benefits plan services includes consulting, design, implementation, and administration for flexible health benefits, actuarial services, group benefits, defined contribution plans, defined benefit plans, cash balance plans, nonqualified plans, and investment advisory services (through InterServ, LLC).
The website also offers the “NQIQuiz,” a test to gauge a Plan Sponsor's knowledge of nonqualified plans, and a “Plan Review” tool that allows Plan Sponsors to upload plan-related documents and receive a complimentary nonqualified plan due diligence review.
was to allow plans to keep using the nonqualified plans that were
This reference compares and contrasts qualified and nonqualified plans.
Stuff your qualified plans and nonqualified plans with as much money as possible.
in the event of distributions from nonqualified plans (including foreign qualified-type plans).
Companies often use mutual funds to fund their nonqualified plans and then defer to a vendor to run it like a 401(k) plan, moving corporate assets when participants reallocate their account balances.
If you are concerned, some nonqualified plans will protect the promised assets from creditors, though you may lose the tax advantages.
Across corporate America, many companies have set up nonqualified plans for higher-paid executives whose full salaries were ineligible for funding through companywide qualified plans.
For staff, it's an excellent opportunity to maximize retirement money and get the kinds of investment options they may not have otherwise; for executives, we offer nonqualified plans that overcome the limits of qualified plans and build for retirement by deferring compensation.