Nonqualified Employee Benefit Plans Search Personal Needs Business Needs Products Get a Printer Friendly Version Nonqualified employee benefit plans offer you an additional means of providing retirement benefits over and above what is provided by the company's qualified benefit plans using after-tax dollars.
Selective plans are usually unfunded.
However, the business can choose to set aside funds or purchase assets, such as life insurance, to informally fund the benefit. No separate fund exists to support the benefit, it must come from the assets of the business. Careful consideration must be given to fashioning a nonqualified employee benefit plan because there are tax considerations and other criteria to consider. A Northwestern Mutual Financial Network Representative can assist you in an analysis of your needs and the possible solutions. Deferred Compensation Plan A Deferred Compensation Plan is an arrangement where an employee defers a portion of his or her current compensation into the plan until death or retirement.