Nonqualified Deferred Compensation Plans
Help clients attract, retain, and reward key talent
Use nonqualified deferred compensation plans to help clients strengthen executive benefits, support retention goals, and build more flexible compensation strategies.
What is a nonqualified deferred compensation plan?
A nonqualified deferred compensation plan is an executive benefits strategy that allows employers to provide future compensation to a select group of key employees. Unlike qualified plans, these arrangements offer greater flexibility in how benefits are structured, timed, and delivered.
NQDC plans can be considered for:
Employers focused on retaining key executives
Companies building compensation packages for key hires
Organizations rewarding long-term service or future performance
Clients looking for flexibility beyond qualified plan limits
Nonprofits evaluating for select employees through 457(b) or 457(f) arrangements
Qualified vs Nonqualified Plans
Qualified Plans | Nonqualified Plans |
|---|---|
Broad-based retirement plans subject to ERISA and annual contribution limits | Selective executive benefit arrangements with flexible design and no standard contribution cap |
What do NQDC plans deliver?
Executive retention
Use deferred compensation and vesting schedules to encourage long-term commitment
Flexible design
Align plan structure with business goals, compensation strategy, and timing needs
Strategic compensation planning
Support leadership hiring, succession planning, and long-term incentive strategies.
Benefits of NQDC Plans
For your clients
Stronger executive compensation packages
Targeted retention and reward strategies
Greater flexibility in plan design and payout
Control over timing and structure of benefits
For your practice
A differentiated strategy for executive conversations
Stronger relationships with business-owner and nonprofit clients
A solution for challenges qualified plans may not address
More consultative value in complex planning discussions
NQDC in practice
Real-world scenarios help advisors connect the strategy to client goals.
Retaining a key executive
A vesting-based deferred compensation plan can encourage long-term retention
Structuring a leadership hire package
A deferred compensation plan can make an executive offer more competitive
Rewarding long-term service
Use NQDC in support of late-career or legacy reward strategies.
Nonprofit executive retention
Using 457(b) and 457(f) designs for nonprofit leadership teams
Why choose FuturePlan?
Nonqualified plans require specialized expertise. The right partner helps you navigate complexity and move from concept to implementation with confidence.
Executive benefits expertise
Partner with a dedicated team of specialists led by experts with nearly 30 years of experience in executive benefits. FuturePlan provides the high-level technical support required to lead complex planning discussions with confidence.
Custom plan design
Every plan is built around specific employer goals. Whether designing for C-suite retention or nonprofit leadership, we specialize in plans with as few as one to five participants.
Structured approach
Our consultative process is built for clarity and speed. We move from an initial call to a fully operational plan, handling all documentation so you can focus on the client relationship.
Resources to help you introduce and build NQDC strategies
Get the guidance and materials you need to understand how these plans work, support client conversations, and move forward with the right structure. FuturePlan offers practical resources and hands-on support to help you identify opportunities and take action.
Understand the strategy:
Why Nonqualified Deferred Compensation Plans
Reinforce key concepts:
Quick Reference Guide to NQDC Plans
Spot potential applications:
Identifying NQDC Opportunities
Leadership
Behind FuturePlan's deep capabilities is an experienced leadership team dedicated to delivering innovative solutions.
Our specialized consulting resources are built to empower advisors—and that shared commitment to helping clients attract and retain key executive talent makes us a natural fit for nonqualified deferred compensation solutions.
Have a potential NQDC opportunity?
Connect with us. We can help you evaluate the situation, clarify the options, and guide the next steps