Adopting a nonqualified plan
tailored to unique groups of individuals can help sponsors address this problem-and is a solution advisers can present.
An important part of our practice involves helping clients manage the constantly changing, increasingly complicated employee benefits area, including qualified and nonqualified plan
compliance, multiemployer plan issues, ERISA fiduciary responsibilities, executive compensation matters, and employee benefit issues in connection with mergers and acquisitions.
5 million in annual revenue, ACI provides design, consultation and administration of 401(k) plans, profit-sharing plans, nonqualified plan
administration and traditional defined benefit plans to more than 400 clients.
This is an option for companies that have maxed out existing qualified plans, decided that qualified plans are too expensive, or concluded that a nonqualified plan
does not create income tax advantages for the owner.
Most nonqualified plan
participants have successful careers and have worked hard over many years to achieve a level of success.
transfer benefits from a nonqualified plan
into a qualified plan.
The 2009 supplement includes information on the division of benefits by the IRS, DOL, Pension Benefit Guaranty Corporation, and other government agencies; the transfer of retirement assets from the dissolution of same-sex marriages, domestic partnerships, and civil unions; post death issues and survivor rights; more coverage of church-sponsored plans and Indian tribal plans; reexamination of old rules through recent court rulings; controversial aspects of the allocations between participants and alternate payees; the latest court decisions on the division of qualified and nonqualified plan
benefits; administration procedures and errors; recent developments in spousal and child support, and maintenance obligations; and recent legislation.
However, a nonqualified plan
can provide tax deferral for the employee, as well as meet employer and employee compensation and financial planning objectives.
In short, a nonqualified plan
should be considered when an employer wants to decrease or eliminate the costs associated with a qualified plan.
Put your nonqualified plan
into an irrevocable trust even though this causes immediate taxation.
After some minor edits, they distribute their RFP to qualified plan and nonqualified plan
providers alike, often with only a one-week turnaround deadline.
Many companies will design a nonqualified plan
utilizing the security provisions of a Rabbi Trust.