F.49 Non-qualified plan rules and options Flashcards

An employer-sponsored retirement plan that allows executives and key employees to defer a portion of their compensation without immediate taxation.

An irrevocable trust set up to hold deferred compensation for employees while remaining subject to creditors’ claims in the event of employer bankruptcy.

A non-qualified plan designed to provide additional retirement benefits to key executives beyond qualified plan limits.

A contractual agreement that provides executives with significant benefits, such as severance pay, stock options, or bonuses, in the event of termination due to a corporate takeover.

IRS regulations that govern the timing of deferrals, distributions, and taxation of non-qualified deferred compensation plans.

A non-qualified plan that provides deferred compensation to a select group of management or highly compensated employees, exempt from ERISA funding requirements.

A deferred compensation arrangement where employees receive hypothetical stock units that mimic actual stock performance without granting actual equity ownership.

A type of incentive that allows employees to benefit from the increase in a company’s stock price without purchasing actual shares.

The timeline over which employees earn ownership rights to deferred compensation, often subject to employer discretion.

A tax principle stating that income is taxable when it is made available to an individual, even if not physically received, impacting the taxation of non-qualified plans.