Most employers turn to qualified retirement plans—401(k)s, SIMPLE IRAs or defined benefit pensions—to help employees save for the future. While these programs offer valuable tax benefits and broad participation features, they also come with IRS contribution limits, nondiscrimination requirements and strict ERISA rules that can leave highly compensated executives seeking more room to defer income.
Non-qualified retirement plans sidestep many of those constraints. By operating outside ERISA’s participation, vesting and testing mandates, these arrangements give plan sponsors the flexibility to reward key employees with supplemental retirement benefits, bridge income-replacement gaps and enhance executive retention. Participants gain the ability to defer additional compensation—salary, bonuses or equity appreciation—beyond the caps imposed on standard plans.
In this guide, you’ll find:
- A clear definition of non-qualified plans and how they differ from qualified plans
- An in-depth look at the four major plan types (deferred compensation, executive bonus, split-dollar life insurance and group carve-outs) plus specialized designs like SERPs and phantom stock
- Practical compliance advice for meeting IRC Section 409A requirements and avoiding costly penalties
- funding options, vesting schedules and restoration match strategies to align benefits with your retention goals
- Insights into who stands to gain most from these arrangements and the latest adoption trends among employers
- Best practices for integrating non-qualified and qualified plans, streamlining administration and launching a program that meets your fiduciary responsibilities
Whether you’re refining an existing executive benefit or evaluating a non-qualified plan for the first time, this article serves as your one-stop resource. Let’s begin by defining what makes a retirement arrangement “non-qualified” and why it might be the right fit for your organization.
Understanding Non-Qualified Retirement Plans
Non-qualified retirement plans are employer-sponsored arrangements that fall outside the Employee Retirement Income Security Act (ERISA). Unlike qualified plans—which must meet strict participation, nondiscrimination and vesting rules—non-qualified plans give sponsors the freedom to tailor benefits exclusively for key employees. This flexibility can help businesses bridge income-replacement gaps for high earners, reward performance with supplemental savings and strengthen executive retention strategies.
When evaluating non-qualified plans, it’s important to understand how they differ from more familiar qualified options:
- Contribution limits
• Qualified plans: Subject to IRS caps (e.g., 401(k) deferral limit of $23,500 in 2025).
• Non-qualified plans: No statutory contribution ceiling—participants can defer as much compensation as the sponsor allows. - Tax treatment
• Qualified plans: Employer contributions are immediately tax-deductible; employee deferrals grow tax-deferred until distribution.
• Non-qualified plans: Employer contributions use after-tax dollars; participants pay tax only when benefits are paid out. - Participation requirements
• Qualified plans: Must be offered broadly and pass nondiscrimination tests.
• Non-qualified plans: Can be offered selectively to executives or other high-value employees. - Funding vehicles and security
• Qualified plans: Assets held in trust for the exclusive benefit of participants.
• Non-qualified plans: Generally unfunded obligations, backed by the employer’s general assets unless a rabbi trust or similar vehicle is used. - Reporting and fiduciary standards
• Qualified plans: Governed by ERISA fiduciary rules, Form 5500 filings and DOL oversight.
• Non-qualified plans: Exempt from ERISA’s trust and reporting requirements, though §409A of the Internal Revenue Code imposes separate rules on timing and form of distributions.
What Makes a Plan Non-Qualified?
A plan earns its “non-qualified” status by operating outside ERISA’s scope. It does not have to meet ERISA’s participation, nondiscrimination or vesting requirements, and there’s no obligation to hold assets in a separate trust. Instead, the employer extends a promise to pay benefits in the future, backed only by its general creditor claims. This structure lets sponsors design highly customized benefits—but also exposes participants to the risk that promised benefits could be accessed by creditors in the event of insolvency.
Differences Between Qualified and Non-Qualified Plans
When you line up a qualified plan against a non-qualified alternative, the key distinctions become clear:
- Coverage: broad‐based vs. selective
- Contribution limits: IRS caps vs. none
- Tax treatment: immediate deduction vs. deferred taxation
- Funding: trust assets vs. general corporate assets
- ERISA reporting: mandatory Form 5500 vs. §409A compliance only
For instance, an executive might max out their 401(k) at the $23,500 limit for 2025 but continue deferring salary and bonus into a non-qualified arrangement with no statutory ceiling. That extra deferral power can significantly boost retirement savings beyond what a qualified plan alone would allow.
Key Considerations for Plan Sponsors
Before adopting a non-qualified plan, sponsors should weigh several critical factors:
- Funding risk: Because benefits rest on the employer’s general assets, participants share in the creditor-claim risk.
- Plan documentation: Clear, precise plan documents are essential to define eligibility, deferral elections and distribution events—and to satisfy IRC §409A.
- Administrative oversight: Partnering with experienced third-party administrators and fiduciary advisors helps manage compliance, draft plan documents and ensure distributions occur according to plan terms.
- Fiduciary responsibilities: Even though ERISA doesn’t apply, sponsors still owe fiduciary duties under §409A and general corporate law, including acting in good faith and with due care.
By understanding these distinctions and responsibilities, plan sponsors can determine whether a non-qualified retirement plan aligns with their executive compensation strategy and broader benefits objectives.
Major Types of Non-Qualified Retirement Plans
Non-qualified retirement plans come in several core varieties, each designed to meet specific executive compensation goals. By understanding how deferred compensation, executive bonus, split-dollar life insurance and group carve-out plans work, sponsors can tailor benefits that bridge the gap left by qualified plans.
Deferred Compensation Plans
Deferred compensation plans allow executives to postpone receipt of a portion of their pay—salary, bonus or both—until a future date, often retirement. There are two common structures:
• True deferred compensation: The employee elects to defer a percentage of current income (for example, 10% of salary and 20% of bonus), which the employer credits to a bookkeeping account.
• Salary-continuation: The employer funds a benefit that replaces part of the executive’s salary after retirement or separation.
In both cases, deferred amounts grow tax-deferred until distribution. Payout timing can be fixed to a retirement date, a specific number of years or contingent on a triggering event such as a change in control.
(Actionable example: An executive defers 15% of annual salary and 25% of year-end bonus into a deferred compensation plan, choosing a retirement-age distribution schedule.)
Executive Bonus Plans
Executive bonus plans use life insurance as a wealth-transfer vehicle. The employer pays premiums on a policy owned by the employee, treating each premium payment as a taxable bonus:
- Employer remits, say, a $50,000 premium on the executive’s life policy.
- The payment is tax-deductible to the company as compensation expense.
- The executive includes the $50,000 in taxable income and owns the policy outright.
This arrangement gives executives cash-value accumulation inside the policy and death benefits to their beneficiaries, while the company secures a deduction and avoids non-qualified plan funding obligations.
(Example: A firm covers a $75,000 annual premium, and the executive pays income tax on that bonus amount, but retains full policy ownership.)
Split-Dollar Life Insurance Plans
Split-dollar arrangements share ownership and economic benefits of a life insurance policy between employer and employee. Two features define most plans:
• Cost-sharing: The employer funds a portion of the premium—often the mortality cost—while the employee covers the remainder (e.g., cash-value growth).
• Benefit split: At the insured’s death, the employer recoups its premium outlay from the policy proceeds; the balance goes to the employee’s beneficiaries.
This structure lets employers provide a funded death-benefit guarantee at a fraction of the cost of a fully employer-owned policy.
(Example: Company pays 80% of annual premiums in exchange for a right to recoup 100% of its contributions at the employee’s passing; any remaining death benefit flows to the family.)
Group Carve-Out Plans
Group carve-out plans replace the imputed income on employer-paid group life coverage above the IRS-exempt $50,000 threshold with an individual policy arrangement:
- The employer “carves out” coverage in excess of $50,000 from the group plan.
- It redirects the premium that would have covered the excess to an individual life policy owned by the executive.
- The executive avoids imputed income under IRC rules, while retaining the full death benefit.
By moving excess coverage into a separate contract, employers control costs and employees enjoy richer life-insurance protection without a hefty tax bill.
(Step-by-step: determine excess benefit amount, calculate redirected premium, issue individual policy and document the carve-out in plan materials.)
Together, these four non-qualified plan types equip sponsors with powerful tools to attract, reward and retain top talent—well beyond the limits of a standard qualified plan.
Additional Specialized Non-Qualified Plan Types
Beyond the four primary non-qualified vehicles, sponsors often look to more targeted arrangements to meet unique executive compensation goals. Two standout examples are Supplemental Executive Retirement Plans (SERPs) and phantom stock plans, each designed to fill specific income gaps and create long-term alignment between executives and the company.
Supplemental Executive Retirement Plans (SERPs)
A SERP is essentially a “top-hat” benefit designed to top up retirement income for select executives. Unlike 401(k)s or profit-sharing plans, a SERP is entirely employer-funded and promises a predetermined benefit—often expressed as a percentage of final average compensation or years of service. Because these plans aren’t held in a trust for tax purposes, the employer carries the funding risk, but also retains full control over plan design and payouts.
Key features of a SERP include:
- Benefit formula: For example, an executive might be guaranteed an annual retirement benefit equal to 30% of their final three-year average salary.
- Vesting schedule: Sponsors typically use graded vesting (e.g., 20% per year over five years) or a cliff vesting (100% after a specified service period) to encourage retention.
- Payout options: Executives can choose between a lump sum—useful for estate-planning flexibility—or a lifetime annuity that provides steady income in retirement.
Because SERPs fill the gap between qualified plan limits and an executive’s target retirement income, they’re particularly effective in organizations where top talent routinely hits IRS contribution ceilings.
Phantom Stock Plans
Phantom stock plans mimic traditional equity awards without granting actual shares. Participants receive “units” that track the value of the company’s stock or an index, and at a specified event—such as a tenure milestone, change in control or retirement—the company pays out the cash equivalent of any appreciation.
How phantom stock works in practice:
- Unit grant: An executive is awarded, say, 1,000 phantom units when hired or upon annual performance review.
- Valuation dates: The plan document defines when the unit value is measured—often at year-end or upon a liquidity event.
- Payout event: When the executive separates from service or meets the vesting condition, they receive a check equal to (current stock price – grant price) × units held.
Phantom stock creates a clear link between executive rewards and company performance, without diluting equity. It’s especially useful for privately held firms or startups that want to offer equity-style incentives but prefer to preserve their cap table.
By adding SERPs and phantom stock plans to their executive benefits lineup, sponsors can craft holistic compensation packages that go well beyond what a standard qualified plan allows—strengthening retention, aligning interests and rewarding long-term performance.
Compliance Requirements Under Section 409A
For non-qualified deferred compensation (NQDC) plans, adhering to IRC §409A isn’t optional—it’s critical. Section 409A governs the timing of deferrals and distributions, and any slip-up can trigger immediate taxation plus stiff penalties. Sponsors need a solid grasp of these rules to keep benefits predictable and participants protected.
Principal Requirements of Section 409A
Under §409A, elections to defer compensation must occur before the start of the service period for which the pay relates. In practice, this means:
- Deferral elections for a calendar-year bonus, for example, must be made by December 31 of the prior year.
- Once elected, deferral amounts and distribution dates can’t be changed, except in very limited circumstances (a permanent change in form of payment, for instance).
- Plans must prohibit any acceleration of payments—once a date or event is set, you can’t pull the payout forward.
Getting these timing and modification rules right in your plan document is non-negotiable. Make sure your third-party administrator is equipped to track election deadlines and enforce the “no acceleration” provision.
Permissible Distribution Events
Section 409A allows distributions only on specific, well-defined events. These include:
- Separation from service (retirement, resignation or involuntary termination)
- Disability (as defined under plan terms)
- Death of the participant
- A fixed calendar date or according to a preapproved schedule
- Change in ownership or control of the company
- Unforeseeable emergency (medical bills, casualty losses, etc.)
Actionable tip: Explicitly list each of these distribution triggers in your plan documents. That clarity helps avoid later disputes—and ensures every payout falls squarely within §409A’s safe harbor.
Consequences of Non-Compliance
Miss a deferral deadline or allow an improper payment acceleration, and all amounts deferred under the plan become immediately taxable to the participant. On top of ordinary income tax, §409A imposes:
- A 20% additional federal tax
- Interest penalties calculated from the original deferral date to the date of actual distribution
For example, if an executive had $100,000 properly deferred but later receives it in violation of §409A, they must report the full $100,000 as income in that year, pay the associated tax plus an extra $20,000 penalty, and potentially owe interest. These combined costs can severely undermine the value of an otherwise attractive benefit.
By building clear §409A procedures into your plan design—deferral election windows, strict document language and robust administrative controls—you safeguard both sponsors and participants from unexpected tax hits and preserve the integrity of your non-qualified program.
Plan Design: Funding, Vesting, and Contributions
Designing a non-qualified retirement plan involves trade-offs that affect both sponsors and participants. The choices you make around funding vehicles, vesting schedules and contribution formulas will shape your plan’s appeal, administrative complexity and risk profile. Below are the three core design elements to consider.
Funding Mechanisms in Non-Qualified Plans
Non-qualified plans are typically unfunded obligations—promises to pay future benefits that rest on the employer’s general assets. That means participants rank alongside other unsecured creditors if your company faces insolvency. To mitigate that risk, many sponsors establish a rabbi trust, a grantor trust that holds plan assets but still permits creditor claims.
• Unfunded (general assets):
– Pros: No trust setup costs; full control over plan assets.
– Cons: Participants bear credit-risk exposure.
• Rabbi trust:
– Pros: Signals commitment by segregating funds; can improve participant confidence.
– Cons: Assets remain reachable by creditors; setup and maintenance fees apply.
Selecting the right funding vehicle hinges on balancing your desire to demonstrate security against the cost and complexity of a formal trust structure.
Vesting Schedules and Retention Strategies
Vesting provisions play a pivotal role in aligning executive retention with long-term performance. Two common approaches are:
• Graded vesting: Benefits vest in increments (for example, 20% per year over five years). This structure rewards continued service and gives executives an incentive to stay through each vesting milestone.
• Cliff vesting: Participants become fully vested after a single waiting period (such as 100% vesting after three years). Cliff schedules simplify administration and encourage executives to commit for a defined period.
Consider your talent-management goals when choosing a vesting schedule. If your priority is to reward steady performance and discourage lateral moves, a multi-year graded vesting might fit best. For a leaner plan design that still locks in key leaders for a set term, a cliff vesting schedule can be more straightforward.
Contribution Structures and Restoration Matches
Contribution terms define how much compensation participants can defer and whether the employer adds an extra match. In a basic deferred-compensation setup, executives elect to defer a fixed percentage of salary, bonus or both. To enhance that arrangement, sponsors often add a “restoration match” that mimics a 401(k) employer match for amounts deferred above qualified-plan limits.
For example, a plan might:
- Allow executives to defer up to 100% of bonus and 50% of salary.
- Provide a restoration match of 50% on deferrals, capped at 6% of total compensation.
So if an executive defers 8% of their bonus and 10% of salary, the plan credits an additional employer contribution equal to 6% of compensation. This restores parity with the qualified plan match that high earners lose once they hit IRS deferral caps.
Clear deferral-election windows, precise match formulas and transparent communication of limits will help participants maximize the plan’s potential—and reduce administrative headaches for sponsors.
Who Benefits From Non-Qualified Plans?
Non-qualified retirement plans shine when you need to provide supplemental savings opportunities that go beyond the constraints of qualified plans. By targeting specific groups—rather than offering the same benefit to everyone—these arrangements help organizations reward and retain the people who matter most, bridge income shortfalls and tailor compensation in creative ways.
Whether you’re looking to give top executives more room to defer income, design a bespoke package for key contributors or close the gap between actual and desired retirement income, a well-structured non-qualified plan can deliver real value. Below are the three main beneficiary categories and how each can leverage these plans.
Highly Compensated Executives
When executives hit IRS limits on 401(k) and IRA contributions, they often have no outlet for tax-deferred savings. A non-qualified plan removes that cap. Participants can continue deferring a portion of salary, bonuses or other compensation into a bookkeeping account that grows tax-deferred until distribution.
Actionable example: A CFO who maxes out the 401(k) deferral at $23,500 in 2025 elects to defer 20% of their annual bonus into a deferred compensation plan. Over a five-year window, this generates an additional $150,000 of tax-deferred retirement assets beyond what the qualified plan allows.
Flexible Compensation for Key Employees
Not every high performer fits the same mold—division heads, regional managers and technical leads may have different retention horizons or cash-flow needs. Non-qualified plans let sponsors set custom deferral elections, vesting schedules and distribution events for each role or individual.
Use case: A VP of Sales is granted a deferred bonus equal to 15% of commissions, vesting 25% per year over four years, with payout scheduled two years after departure. This precise timing aligns the benefit with the company’s growth targets and the executive’s career path.
Addressing Retirement Gaps
Even after maxing out qualified plans, many executives still fall short of their target replacement ratio—often 70%–80% of pre-retirement income. Supplemental Executive Retirement Plans (SERPs) or phantom stock arrangements can plug that gap by promising a defined benefit or tying rewards to company performance.
Example: A COO nearing retirement needs 80% income replacement but faces a shortfall. The sponsor establishes a SERP that guarantees an annual benefit equal to 25% of their final three-year average salary, paid as a lifetime annuity. This supplemental benefit, layered on top of Social Security and the 401(k), closes the projection gap and provides peace of mind.
By zeroing in on these beneficiary groups, plan sponsors can deploy non-qualified plans in a targeted, cost-effective way—delivering high-impact benefits where they’re needed most and reinforcing loyalty among your most critical talent.
Trends and Prevalence of Non-Qualified Plans
Over the past decade, non-qualified deferred compensation (NQDC) plans have moved from niche to near-mainstream for companies seeking to attract and hold on to top talent. A recent PSCA survey sheds light on how widespread these arrangements have become and why sponsors are leaning into them.
Adoption Rates Among Employers
According to the PSCA survey:
- 87.9% of respondents now offer some form of NQDC plan.
- 83.6% cite employee retention as a primary objective, making it the leading driver behind adoption.
- Recruitment of high-value executives ranks a close second, with a substantial majority pointing to NQDC benefits as a differentiator in competitive hiring.
These figures underscore that NQDC plans are no longer rare perks reserved for large enterprises. Organizations of all sizes view them as strategic tools for executive compensation and talent management.
Participant Eligibility and Deferral Rates
Even as adoption climbs, NQDC plans remain targeted:
- On average, just 7% of employees at sponsoring firms are eligible to participate.
- Among those eligible, participation averages 63%, reflecting strong buy-in once executives qualify.
- Typical deferral elections cluster around 10% of base salary and up to 30% of annual bonus.
This selectivity ensures resources are focused on key contributors. High participation among eligible executives demonstrates that these plans deliver meaningful value where it counts.
Education and Communication Practices
Clear communication is crucial to program success. The PSCA study found:
- 75% of organizations provide NQDC-specific education—workshops, webinars or one-on-one sessions.
- Many integrate non-qualified plan guidance into broader financial wellness initiatives, showing how these programs complement 401(k)s and other benefits.
By offering plain-language summaries, interactive calculators and timely reminders, sponsors help executives navigate deferral elections, vesting schedules and tax implications. Better-informed participants translate into smoother administration and a more positive experience overall.
As more companies embrace non-qualified retirement plan types to recruit, retain and motivate critical talent, these adoption, eligibility and education trends are set to deepen—cementing NQDC arrangements as a cornerstone of modern executive compensation strategies.
Integrating Qualified and Non-Qualified Retirement Plans
A smart retirement strategy weaves qualified and non-qualified arrangements into a cohesive package that meets the needs of every employee tier. While 401(k) plans offer broad‐based tax advantages and straightforward administration, non-qualified plans fill the savings gap for executives and other key contributors. By coordinating design features—deferral elections, employer matches, vesting schedules—sponsors create a seamless experience that drives participation, supports retention and limits administrative friction.
When these plans share common elements—like matching formulas or distribution events—participants see a unified benefits stream instead of siloed programs. Coordination also reduces duplicate recordkeeping and ensures compliance policies apply consistently across plan types. Below are three critical areas to focus on when integrating qualified and non-qualified retirement plans.
Restoration Matching Strategies
A restoration match mirrors the 401(k) employer match for amounts that highly compensated employees can’t defer under IRS limits. For example, if the standard 401(k) match is 50% on deferrals up to 6% of pay, a restoration match credits the same rate on additional deferrals in a non-qualified plan. In practice, the plan document might say:
Restoration Match = 0.50 × Excess Deferrals
Excess Deferrals = Participant Deferrals − IRS Qualified Plan Limit
So an executive who defers 10% of salary—4% above the qualified plan cap—would receive a 2% restoration match on total compensation. This approach aligns incentives across both plans, maintaining parity in employer contributions and reinforcing a unified savings message.
Coordinated Plan Administration
Unified recordkeeping is key to reducing complexity and cost. Bringing qualified and non-qualified plans onto the same administration platform—often through a single TPA or integrated recordkeeper—eliminates data silos. A consolidated system can:
- Automate deferral election deadlines and match calculations
- Generate synchronized statements for participants
- Flag discrepancies before they become compliance issues
Summit Consulting Group’s administration tools, for example, gather data from payroll and existing vendors, generate required paperwork and prepare government filings—all from one dashboard.
Monitoring Compliance and Reporting
Ongoing oversight ensures both plan types stay on track. For qualified plans, this means annual nondiscrimination testing and Form 5500 filings. For non-qualified arrangements, it means tracking:
- Deferral election windows under IRC §409A
- Vesting milestones and distribution triggers
- Employer match credits and account balances
Regular audits—quarterly or semi-annual—help catch errors early. Adopting a central compliance calendar with reminders for testing, reporting and document updates keeps sponsors ahead of filing deadlines. When administrative duties are handled proactively, fiduciary risk drops and participants gain confidence.
By bringing together qualified and non-qualified retirement plans under a single governance framework, sponsors deliver a more engaging participant experience, streamline administration and maintain robust compliance. To explore how Summit Consulting Group can help you integrate and manage your retirement offerings, visit our professional plan administration and fiduciary services.
Best Practices for Implementing Non-Qualified Retirement Plans
Launching a non-qualified retirement plan involves more than choosing a plan type—it demands careful planning, clear communication and expert guidance. Adopting these best practices will help you roll out a program that aligns with your executive compensation goals, meets regulatory standards and delivers a positive participant experience.
Documenting Plan Terms and Policies
Start with a comprehensive plan document that leaves no detail to chance. At minimum, it should spell out:
- Eligibility criteria: Who can participate and how often eligibility is reviewed
- Deferral election rules: Election windows, deferral limits and any subsequent modification restrictions
- Distribution events: Permissible triggers under IRC §409A (separation from service, disability, change in control, etc.)
- Vesting schedule: Whether benefits vest gradually or in a single cliff after a set period
- Benefit formulas: How deferred amounts, restoration matches or SERP benefits are calculated
Engage ERISA attorneys or compensation specialists early to verify that your document satisfies all legal requirements—especially §409A timing rules and anti-acceleration provisions. Before any deferral election window opens, conduct a formal compliance audit to confirm your plan structure mirrors the written policies. This extra step can prevent costly tax surprises and participant disputes down the road.
Employee Communication and Education
Even well-designed plans can stumble without clear communication. Craft concise, jargon-free materials that help participants understand:
- How to make deferral elections and when decisions become irrevocable
- The impact of distributions on taxes and retirement cash flow
- Key dates and next steps—annual windows, vesting milestones and payout schedules
- Tools for planning, such as simple calculators or illustrative examples
Distribute these materials through multiple channels: email summaries, printable FAQs and an online portal. Host kickoff webinars or lunch-and-learn sessions to walk executives through the plan features and answer questions live. Follow up with individual meetings or one-on-one calls for high-value participants who may need tailored guidance. The goal is to build confidence and ensure each executive feels equipped to optimize their benefit.
Partnering with Professional Advisors
Non-qualified plans sit at the intersection of tax law, corporate finance and fiduciary duty. Rely on a network of experts to navigate complexity:
- Third-party administrators (TPAs) to handle ongoing recordkeeping, election tracking and distribution processing
- ERISA counsel to review plan documents, audit §409A compliance and advise on fiduciary obligations
- Tax advisors who can model the impact of deferrals, restorations and early distributions on both company and participants
Selecting advisors with deep experience in NQDC arrangements—rather than generalist benefit consultants—can pay dividends in risk reduction and plan efficiency. Regularly scheduled check-ins with your advisory team ensure your plan stays aligned with evolving regulations, corporate objectives and the needs of your key talent.
By combining robust documentation, transparent communication and a strong advisory network, you’ll lay the groundwork for a non-qualified retirement plan that performs as promised—benefiting both your executives and your long-term business goals.
Moving Forward with Non-Qualified Plans
Non-qualified retirement plans offer more than just an extra bucket for savings—they act as strategic levers for rewarding and retaining your most critical talent. By layering these arrangements onto your existing qualified plan infrastructure, you can:
- Target top executives with supplemental savings vehicles that bypass IRS contribution limits
- Foster long-term loyalty through vesting schedules and benefit formulas aligned with corporate goals
- Address the widening gap between desired retirement income and what traditional plans allow
As you consider the next steps, start by reviewing your executive compensation strategy. Identify which leaders have hit—or will soon hit—the ceiling on qualified plans, and explore how a deferred compensation arrangement, SERP or phantom stock design could fill their needs. Engage your tax and legal advisors early to map out §409A-compliant election windows and distribution events. Simultaneously, draft clear communication materials so participants understand how deferral elections work, what vesting timelines apply and when they’ll receive payouts.
Whether you’re enhancing an existing program or building a non-qualified plan from scratch, selecting the right partners is crucial. Summit Consulting Group combines seasoned third-party administration with independent fiduciary oversight to simplify implementation and ongoing management. Our team will help you:
- Design a plan document that satisfies §409A requirements and corporate objectives
- Automate deferral tracking, match calculations and reporting through an integrated platform
- Educate participants with tailored materials, workshops and one-on-one guidance
Ready to elevate your executive benefits strategy? Visit https://www.geauxsummit401k.com to learn how Summit Consulting Group’s professional plan administration and fiduciary services can bring your non-qualified retirement vision to life.
