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 ?
Nonqualified plans can have a different investment lineup from qualified plans, since they have a focus on executive planning and they have different trenches for savings such as college savings accounts or vacation home accounts.
Because no two sales are the same, be sure to evaluate a provider's scale, service and stability specifically dedicated to nonqualified plans.
Plan sponsors might be unaware of the need for such savings opportunities, Dorton says, but advisers can add value for NQDC plan sponsors by detailing how nonqualified plans can help recruit and retain key people.
Shulman, Roberts & Holland LLP, has substantial experience in employee benefits compliance and transactional work, advising on various issues relating to pension plans, 401(k) plans, ESOPs, 403(b) plans and other qualified and nonqualified plans.
Most nonqualified plans are designed to be unfunded plans and may be viewed in two parts:
The tax consequences of nonqualified plans are very different for owners and employees.
Key employees, those identified as most critical to the business, confirm nonqualified plans factor into employment decisions, according to the research.
How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans.
was to allow plans to keep using the nonqualified plans that were
Nonqualified plans are usually used to provide retirement benefits to a select group of executives, or to provide such a select group with supplemental benefits beyond those provided in the employer's qualified retirement plans.
This reference compares and contrasts qualified and nonqualified plans.