Nonqualified deferred compensation
What is a nonqualified deferred compensation (NQDC) plan?
A NQDC plan may be an appealing option for employers looking to offer a supplemental executive retirement plan to help attract and retain key talent. NQDC plans can give highly compensated employees an opportunity to increase their retirement savings in addition to a 401(k) or 403(b) plan. With more than 85 years of retirement plans experience, Transamerica can create customized solutions, including NQDC, defined contribution, and defined benefit plans.
Benefits of an NQDC plan
A standard 401(k) or 403(b) defined contribution plan may not meet the needs of all employees. A nonqualified retirement plan could help employers recruit and retain executive-level talent while offering potential tax advantages. Since NQDC plans aren’t subject to IRS contribution limits, they can also help highly compensated employees save enough to meet their future income needs.
Joining an NQDC plan should be a “shoe-in”
Seeking to increase NQDC plan participation, Red Wing Shoe Company collaborated with Transamerica to execute a multi-touch campaign during the open-enrollment period. The effort earned a PSCA Signature Award and led to a 42% increase in year-over-year enrollment. See how the campaign helped Red Wing Shoe Company employees become better prepared for retirement.*
Work with a leading NQDC provider
Employers seeking to offer value for their highly compensated employees can count on Transamerica to deliver customized NQDC solutions, regardless of their retirement program’s complexity. We offer flexible plan designs, efficient administration, and years of experience as a top NQDC provider.
Investment lineup flexibility
Participants can choose from the menu created for the defined contribution plan or other funding options.
Consistent service across the board
Employers work with the same dedicated team for their qualified and nonqualified plans.
Retirement planning made simple
Participants can view and manage all their workplace retirement accounts in one place.
Efficient recordkeeping and reporting
Employers can track future obligations and determine how and when NQDC participants receive benefits.
Strategic vision
Our corporate-owned life insurance (COLI) solutions can help meet the income tax-planning needs of for-profit organizations.
Helping people live their best lives
In addition to NQDC plans, Transamerica offers a wide array of retirement solutions to help employers meet their specific needs.
Important information
Information regarding retirement plans is general and is not intended as legal or tax advice. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. In addition, some products, investment vehicles, and services may not be available or appropriate in all workplace retirement plans. Plan sponsors and plan administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations.