- Introduction
- Reverse Mortgage
- Sale and Leaseback of Your Home
- Nonqualified Deferred Compensation Plans
- Income Deferral Programs
- Other Investments for Retirement
- Comparing Taxable and Tax-Exempt Yields
- Capital Gains Tax Rates
- Tax Rate on Dividends
- Comparing Tax-Advantaged Investing to Other Investing
- Investing in Growth Stocks or Growth Mutual Funds
Some employers may provide additional retirement savings for employees by establishing a nonqualified deferred compensation plan, such as a SERP (supplemental executive retirement plan). These plans are typically established to provide deferred compensation to a select group of management or highly compensated individuals. You receive payment in the future for services rendered today and you don't generally pay tax until you receive your money. Such plans typically have no contribution limits, and your employer may generally use its discretion as to who will participate.
IMPORTANT NOTE: An unfunded deferred compensation plan allows you to defer taxation. But since the plan is not funded by the employer, you are just a general creditor of the company. The lack of guarantee that your deferred compensation will be paid is one of the biggest drawbacks of unfunded deferred compensation plans.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value |
Not a Bank Deposit | Not Insured by Any Federal Government Agency |
Meeting with NHTrust team is without obligation or cost.
NHTrust is a trade name of New Hampshire Trust Company. Brokerage services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Investment and insurance products are subject to investment risk, including the possible loss of value. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. Osaic Institutions and NHTrust not affiliated.