Acuerdo de compensación diferida de beneficios definidos no calificados - Nonqualified Defined Benefit Deferred Compensation Agreement
Description
Key Concepts & Definitions
A nonqualified defined benefit deferred compensation plan is a type of retirement plan usually offered by employers to high-earning executives as an incentive beyond traditional qualified plans like 401(k). Unlike qualified plans, these plans are exempt from many requirements of the Employee Retirement Income Security Act (ERISA) and can offer tailored benefits to a selective group of employees.
Step-by-Step Guide
- Plan Design: The employer designs the plan with specific features tailored to meet the needs of the selected employees.
- Funding: Decide on funding options either through employer contributions, employee deferrals, or both.
- Communicate: Clearly communicate the plan specifics to eligible employees, including benefits and potential risks.
- Implement: Establish administrative procedures and ensure legal compliance for implementing the plan.
- Monitor: Regularly review the plan to ensure it meets its financial goals and obligations.
Risk Analysis
- Legislative Risk: Changes in tax laws or other regulations could affect the tax deferral benefits.
- Market Risk: Investment losses can affect the plan's ability to deliver promised benefits.
- Liquidity Risk: Nonqualified deferred compensation may not be accessible in times of financial need as they typically are inaccessible until a predetermined date or event.
- Creditor Risk: In case of bankruptcy, these plans are often subject to creditors' claims as they are not ERISA protected.
Best Practices
- Legal Compliance: Ensure the plan complies with all applicable laws and regulations to prevent legal complications.
- Clear Communication: Provide clear, understandable explanations of the plan to eligible employees to ensure they are fully informed.
- Regular Review: Conduct regular reviews and adjustments of the plan in response to changing market conditions and company objectives.
- Risk Management: Implement strategies to mitigate associated risks, including diversifying investments and securing insurances.
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FAQ
La compensacion diferida es un acuerdo entre un empleador y un empleado en el que una parte de sus ganancias, o compensaciA³n por el trabajo realizado, se retiene o difiere para el pago en un momento futuro. Es ampliamente utilizado como un plan de ahorro para la jubilaciA³n.
Un plan 457(b) de compensacion diferida es un plan de retiro que ofrece tu empleador, creado para permitir que empleados pAºblicos como tAº ahorren dinero de cada cheque de salario para el retiro.
Un plan 457(b) de compensacion diferida es un plan de retiro que ofrece tu empleador, creado para permitir que empleados pAºblicos como tAº ahorren dinero de cada cheque de salario para el retiro.
Un plan de jubilacion calificado es un plan del empleador que beneficia a los empleados y que cumple con requerimientos especAficos del CA³digo de Impuestos Internos. Estos planes pueden ser elegibles para beneficios tributarios especiales, como aplazamientos de impuestos para las contribuciones de la empresa.