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  • Nonqualified Deferred Compensation Agreement (salary Continuation Or Serp). Speciman Documents

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ENTNONQUALIFIED DEFERRED COMPENSATION AGREEMENT (SALARY CONTINUATION OR SERPSUPPLEMENTAL EXECUTIVE RETIREMENT PLAN)CU MFOR FINANCIAL PROFESSIONAL USE ONLYNOT FOR PUBLIC DISTRIBUTION. Specimen documents.

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A supplemental executive retirement plan (SERP) is a set of benefits that may be made available to top-level employees in addition to those covered in the company's standard retirement savings plan. A SERP is a form of a deferred-compensation plan. It is not a qualified plan.

Certain plans are not subject to Section 409A, including tax- qualified employer plans, bona fide sick leave or vacation plans, disability plans, death benefit plans, and certain medical expense reimbursement arrangements.

How do payroll taxes apply to NQDC? NQDC plans rules impose federal (and generally state) income tax withholding requirements in each year in which employers distribute and include amounts in employee compensation. For employees or former employees, employers report the NQDC distributions on Form W-2.

In addition, although SERPs are governed by ERISA, they are exempt from many of ERISA's provisions, including the fiduciary duty provisions. Under ERISA, fiduciaries are obligated to act prudently and solely in the interests of plan participants and beneficiaries.

NQDC plans allow corporate executives to defer a much larger portion of their compensation, and to defer taxes on the money until the deferral is paid. You should consider contributing to a corporate NQDC plan only if you are maxing out your qualified plan options, such as a 401(k).

Incentive stock options are exempt from Section 409A if they are issued pursuant to Section 422 of the Code and continue to meet the requirements thereof. Any options that fail to meet the requirements of Section 422 are nonqualified stock options.

Penalties for Violations If a violation of these rules occurs regarding an executive's benefits under a SERP, generally all vested amounts subject to Section 409A under the SERP and all similar plans are taxed to the executive immediately.

NQDC plans are not subject to the discriminatory participation rules under ERISA, which allows companies to offer such plans to select employees. NQDC plans also act as a key tool for retention. They are used as golden handcuffs for key employees, as leaving the company before retirement means forfeiting NQDC plans.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232