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The retirement wants of the standard U.S. employee will be nicely served by constant participation in a payroll deferral 401(ok) plan, with the potential to enrich pre-tax financial savings with after-tax contributions to Roth-style and personal brokerage accounts.
Nevertheless, executive-level staff usually face extra complicated monetary conditions and should require extra choices to assist them meet their retirement targets.
In lots of workplaces, nonqualified deferred compensation plans play an integral half in a complete compensation bundle designed to draw and retain these key staff.
Whereas they’re doubtlessly highly effective financial savings autos for extremely compensated purchasers, deferred compensation preparations are additionally complicated from an operational and tax administration perspective.
As such, advisors with a strong information base relating to nonqualified deferred compensation preparations are extremely valued by each enterprise homeowners and company government purchasers.
Getting the job proper requires quite a lot of studying for advisors seeking to broaden their companies on this area, and place to start out is with the deferred compensation tax fundamentals.
These insights can assist advisors as their purchasers both arrange or profit from nonqualified deferred compensation plan preparations.
See the accompanying slideshow for a rundown of 10 essential nonqualified deferred compensation information drawn from the ALM Tax Information library.
Need extra tax-focused insights? Discover present and correct solutions to your tax questions with Tax Information.Â
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