Non-Qualified Plan Services

The opportunity to defer pre-tax earnings, enjoy tax-deferred growth and have a choice of investment options are restricted for key employees because of government imposed limits on the amount that can be contributed to a Qualified Plan, including defined benefit and 401(k) plans.

Most employers provide a Non-Qualified Plan to extend income deferral opportunities to higher compensated employees. The advantages of these plans to the participant are:

  • Ability to defer pre-tax, up to 80%-90% of Salary and 100% of incentive compensation.
  • Opportunity to select from an investment menu.
  • Potential to reduce volatility without a significant reduction in returns.
  • Flexibility to withdraw prior to age 59.5 without penalty.
  • Ability to capture lost matching 401(k) contributions.

The advantages these plans offer to an employer include:

  • Comparatively low cost benefit that is an industry standard and which studies indicate is highly appreciated by the majority of key employees.
  • Provides flexibility to meet specific objectives or situations.

The Todd Organization is one of the nation’s most experienced firms offering these plans, making us uniquely suited to provide benefit plans to company’s key employees.