What Is Non Qualified Retirement Plan?

December 1, 2021 1 Min read Views 270 BUSINESS

In essence, a non-qualified retirement plan is a contract that provides pension benefits without being entitled to special tax treatment under the Internal Revenue Code or the Employee Retirement Income Security Act. Most are created by employers, but individuals can create them as well. The flexible nature of non-qualified plans allows them to set benefit amounts and payouts more freely because they are not constrained by the codes. The majority are designed to retain and attract highly paid employees.

Tags: 457 retirement plan, qualified retirement plan, retirement, retirement planning

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