Non-Qualified Retirement Plan

From Bogleheads

The Employer Provided Retirement Plans Series
Legal Background
Employee Retirement Income Security Act - ERISA Qualified Retirement Plan Non-Qualified Retirement Plan
Defined Benefit Plans
Defined Benefit Pension Plan
Defined Contribution Plans
Employer Retirement Plans Overview • 401(k) • Solo 401(k) • Thrift Savings Plan • G Fund • 403(b) • 457(b) • Links to 457-b Plans • SEP IRA • SIMPLE IRA • SARSEP • Keogh Plan
Managing Your Defined Contribution Plans
How to Campaign for a Better 401(k) Plan Investment Policy Statement Principles of Tax-Efficient Fund Placement Self Directed Brokerage Account Net Unrealized Appreciation - NUA
Additional information see: • IRAs  • Annuities  • Split-Interest Gifts (charity)

non-qualified retirement plan

A plan that does not meet the requirements of Internal Revenue Code Section 401(a) and the Employee Retirement Income Security Act of 1974 (ERISA) and therefore does not qualify for favorable tax treatment.

In essence, a non-qualified retirement plan is a contract to provide pension benefits. Individuals can create one, but most are created by employers.

Contributors to non-qualified plans don't get the same tax benefits as contributors to qualified plans, such as 401(k)s, do. However, non-qualified plans can be much more flexible in setting benefit amounts and timing payouts.

The contributions made to these plans are usually nondeductible to the employer and are usually taxable to the employee. However, they allow employees to defer taxes until retirement. Non-qualified plans are often used to created to attract and retain highly paid employees.

See Also

Qualified Retirement Plan
Employer Retirement Plans Overview

External Links

Definitions of non-qualified retirement plan on Google

How to Cite

Link to this page from your Bogleheads Forum post by copying the text inside the box below:

Please see [url=http://www.bogleheads.org/wiki/Non-Qualified_Retirement_Plan]Non-Qualified Retirement Plan[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].

Notice something that needs correcting? Notify a wiki editor or become a wiki editor and fix it yourself!