Today, HCEs and HCE business owners earn more, retire earlier, and live longer than their predecessors. Academic research indicates that the percentage of retirement income required to sustain pre-retirement lifestyles increases in tandem with increasing income levels.

These HCEs recognize the need to build adequate assets and, therefore, most desire to maximize their contribution to their 401(k) Plans. However, IRS regulations limit HCE retirement asset accumulation and planning efforts. Further, personal investment alternatives cannot replicate the economics and tax-efficiencies of employer sponsored benefit plans. To deliver HCEs with an effective solution, your business can sponsor a NQDC Plan that provides:

  • Income tax relief via unlimited pre-tax deferral of salary, bonuses, commissions, etc.
  • “Golden handcuffs” to retain key employees”
  • Tax-deferred earnings on account balances
  • A quality menu of diverse investment alternatives
  • Enhanced planning flexibility for life-event purposes (college education, etc.), as well as retirement
  • Scheduled distributions without an early withdrawal penalty [10% in a 401(k)]

If you would like to learn more about ways to defer taxes for yourself and your HCE contact us today.