Nonqualified Deferred Compensation Plans

As a seasoned industry veteran continues in a successful career, they may begin wondering about different alternatives for building a bigger nest egg. Over time, they may have accumulated a sizeable amount of money through a company-sponsored 401(k) plan, but at their current income, there might be another employer sponsored savings vehicle called a nonqualified deferred compensation (NQDC) plan.

NQDC plans, unlike traditional 401(k) plans, are not capped by the IRS annual contribution limits of $18,000 for 2015 for those younger than age 50. There are also no mandatory minimum withdrawal requirements at the age of 70 ½ and no penalties for distributions taken prior to age 59 ½ in an NQDC plan. However, the distributions will be subject to ordinary income taxes when the distribution is taken from the plan.

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SPONSORED CONTENT

Empowering communities

Rocky Mountain Health Plans (RMHP), part of the UnitedHealthcare family, has pledged its commitment to uplift these communities through substantial investments in organizations addressing the distinct needs of our communities.

Tony Ripsam
Sr. Vice President, Investment Officer
Bouchard-Bates-Ripsam-Boxleitner Wealth
Management Group of Wells Fargo Advisors
1073 N. Lincoln Ave.
Loveland, CO 80537
(970) 619-5528
(800) 758-1652