Nonqualified deferred compensation (NQDC) plans often are an important part of a company's retirement benefits package for top executives. Not only can the plans be a powerful tool for generating additional retirement savings, they also can help highly compensated executives manage their tax liabilities throughout their careers. This paper explains the key items to remember to manage NQDC distributions properly.
- Five recommendations for understanding your responsibility as an employer concerning
tax calculations and the payment of income taxes
- Getting support from your team in managing the process
- Ensuring you have robust recordkeeping to effectively manage your plan