Moneycontrol
Get App
YOU ARE HERE > Moneycontrol > Retirement Planning > Glossary

Retirement Planning

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Non-qualified Retirement Plan Definition

A non-qualified retirement plan is one that does not qualify for special tax treatment under the Internal Revenue Code or the Employee Retirement Income Security Act. In essence, a non-qualified retirement plan is a contract to provide pension benefits. Individuals can create one, but most are created by employers.

Contributors to non-qualified plans don't get the same tax benefits as contributors to qualified plans, such as 401(k)s, do.

But because they are not constrained by the codes, non-qualified plans can be much more flexible in setting benefit amounts and timing payouts. Most are created to attract and retain highly paid employees.

Other Sections
Sections
Follow us on
Available On
PCI DSS Compliant