NQDC plans offer important benefits — and some notable risks
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Description
Abstract: Nonqualified deferred compensation (NQDC) plans allow participants to set aside large amounts of tax-deferred compensation. They also enable participants to schedule distributions to align with personal financial goals. However, NQDC plans pose substantial risks. This article compares the pros and cons. A sidebar warns about noncompliance with Internal Revenue Code Section 409A.
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