Your Employer Offers You Non-Qualified Deferred Compensation (NQDC): Now What?

It’s always nice to be recognized for a job well done. Being invited to participate in your employer’s non-qualified deferred compensation (NQDC) plan, is one such vote of confidence; it’s typically offered exclusively to select executives or similar high-performing employees.

That said, just because you can participate in your employer’s NQDC, does not always mean you should. Properly deployed, an NQDC can be a powerful tool for reducing your federal and state tax liabilities. But determining whether this benefit actually benefits you requires careful planning, and a solid understanding of the perks and perils involved.

• What Is an NQDC?

• What’s the Catch?

• Added Complexities

• Cart vs. Horse Considerations

• Measure Twice Before Committing at Once

Read the full article at Plancorp.