A non-qualified plan allows an employee to defer the receipt of taxable wages or bonuses until some future year when (hopefully) the employee is in a lower tax bracket, thereby paying less in taxes when the compensation is received.

Although non qualified plans are easier to set up than qualified plans, there are specific rules that must be followed to achieve the objective of deferring an employee's taxable compensation. All non qualified plans must satisfy the following three requirements:

• The deferred compensation arrangement between the employer and the employee must be entered into before the compensation is earned by the employee.
  
• The deferred compensation cannot be available to the employee until a previously agreed upon future date or event.
  
• The amount of the deferred compensation cannot be secured (i.e. it must remain available to the employer's creditors).
  
• If your employer sponsors a Non Qualified Plan, you may review information specific to your plan by logging in below: