Financial Leadership
Using 5 facets of nonqualified incentive plans to attract, reward, and retain key talent
5 considerations for a well-designed nonqualified incentive plan
May 23, 2023
12:18 pm
Sponsored by Gallagher
Privately held healthcare organizations need a creative, cash-based incentive program to stay competitive with their peers. Nonqualified deferred compensation (NQDC) plans provide a platform for organizations of all sizes to deliver these solutions.
An NQDC plan is a flexible, tax-efficient program that provides an employer with a tool to attract, reward and retain key employees. It also provides the key employees with a chance to maximize their retirement readiness with supplemental savings. Beginning in 2024, highly compensated employees will no longer be able to make pretax catch-up contributions to their employer-sponsored retirement plan. This will make NQDC plans even more attractive as tax-efficient savings options for key talent.
Benefits users will gain after reading this content:
- How a well-designed program will reward key non-owner employees for driving the success of the business while providing the organization with a tax-efficient program.
- What to consider when determining who participates and how incentives should be designed as a tool for attracting, retaining, and rewarding employees.
- Why the latest legislation makes offering a NQDC plan a tax-efficient savings option for key talent.
- How NQDC plans can help key employees maximize their retirement readiness with supplemental saving opportunities.