What is a Nonqualified Deferred Compensation Plan?

A nonqualified deferred compensation plan (“Nonqualified Plan”) is legally defined as “any plan that provides for the deferral of compensation, other than: (a) a qualified employer plan; and (b) any bona fide vacation leave, sick leave, compensatory time, disability pay, or death benefit plan.” See 26 USC 409a (d)(1).” Under this broad definition, one would consider stock options and other long-term equity-based … Continue reading What is a Nonqualified Deferred Compensation Plan?