Nonqualified deferred compensation plans – Reward, retain key employees with these arrangements

Description

Abstract: Many contractors have a few key employees who play a critical role in their construction company’s success, and they want to reward these superstars for their hard work while increasing the likelihood that they won’t jump ship to the competition or strike out on their own. In these cases, a nonqualified deferred compensation (NQDC) plan may be just what a construction company owner is looking for. This article describes the ins and outs of these arrangements, which allow business owners to give their very best employees an extra, tax-deferred retirement reward that can be structured in a variety of ways.