Deferred Income



For certain highly compensated employees there are non-qualified deferred compensation programs that can continue these pretax savings for their compensation that goes beyond the amount considered by law ($270,000 in 2017) for qualified plans. While similar to qualified plans in the ability to save money on a pretax basis, there are significant differences to consider. If you are fortunate enough to work for an organization that offers these types of plans, and you are eligible to participate, you should revisit the potential benefits offered by these plans. This commentary will explain the primary benefits and concerns with using a non- qualified deferred compensation plan. The primary benefit of deferred compensation programs is the ability to continue employee and employer contributions of your qualified plans (such as your 401(k) or company pension) on your compensation above the amount considered for qualified plans. This

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