To be a well-informed participant in your company's nonqualified deferred compensation (NQDC) plan, you must know these related financial-planning concepts.

Nonqualified deferred compensation offers you a way to accumulate wealth above the amount you can defer in a 401(k). Depending on your income, there may be a substantial gap between what you can put away with a 401(k) or 403(b) plan, what you will get with Social Security, and what you will need in retirement…