Non-Qualified Deferred Compensation Plan | Bank of America Merrill Lynch
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Nonqualified Deferred Compensation

Helping your key talent realize the full value of Nonqualified Deferred Compensation

A nonqualified deferred compensation plan (NQDC) gives your key employees the ability to defer receiving a certain amount of compensation until a point in the future, with potential benefits. At Bank of America, we help your top talent make the most of this opportunity with dedicated support from a team with a deep understanding of these types of arrangements and the value they play within an overall financial plan.

Attract top leaders to your organization

In today’s competitive environment, an NQDC plan could be a strong tool to help you attract and retain highly compensated employees. Our offering helps your key employees manage their tax liability (by making tax deferred contributions and scheduling distributions) while enjoying wealth planning services from a leader in the industry.

Planning with a broader view of their financial lives

With our powerful integrated benefits capabilities, key employees can take active control of their NQDC plan benefits and enjoy a holistic view of their other benefits such as retirement or equity plans. With a unified lens into all their financial benefits, they can better appreciate and plan for their long-term goals. Merrill representatives are available to assist executives in using their NQDC plan, making distribution elections and with other complex decisions.

We help your valued employees:

  • Manage their tax liability (by making tax deferred contributions and scheduling distributions)
  • Work to close the retirement savings gaps caused by contribution limits
    on their 401(k) account
  • Plan for short- and long-term goals

Our complementary solutions include:

Recordkeeping platform designed to support IRC Section 409A
Wealth management for executives
Rabbi trust services to help safeguard funds


This is a nonqualified deferred compensation plan under the rules and regulations of the Internal Revenue Service and is exempt from most of the rules and regulations under ERISA. The Plan is unfunded and unsecured. The balance(s) in your account represents a promise to pay non-qualified benefits at a future date. Your investment choices are “deemed” as investments for the purposes of calculating your account value in the Plan. However, you are not actually invested in the underlying investment vehicles. This means the Plan is backed by the general assets of the company and any funds that may be set aside to pay benefits are subject to claims by the company's creditors. Participants have no rights to any assets other than as a general unsecured creditor.

Bank of America, Merrill, their affiliates, and advisors do not provide legal, tax or accounting advice. Clients should consult their legal and/or tax advisors before making any financial decisions.

See how Retirement & Benefit Plan Services can expand the possibilities of your employee benefit solutions.
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