Hide login
UPDATES! College Financial Aid & Funding With Nonqualified Deferred Compensation (Part 1): Planning Your Deferrals

For parents, one of the biggest expenses is the cost of their children’s higher education. Planning for NQDC contributions and distributions now can help with college costs later. Part 1 looks at NQDC in the context of eligibility for need-based financial aid.



Not Yet Registered?
You can have access to our in-depth exclusive content on NQDC in just a few clicks.
Forgotten Password?
Key Points in This Article
The strategic use of NQDC for college-funding purposes comes down to the impact of deferrals and distributions on eligibility for financial aid and tax aid, and then on planning for the necessary cash flow.
Deferring some income in your company's NQDC plan may actually help your child qualify for need-based aid in the year of deferral because your reported income in that year will be lower.
Given the high cost of many colleges, some need-based aid may be available even to families with relatively high incomes.