Hide login
Glossary of Terms
U
Unforeseeable emergency
Not Yet Registered?
Sign up now!
You can have access to our in-depth exclusive content on NQDC in just a few clicks.
Forgot your username or password?
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Random Term
Informal funding

A method by which a company puts money aside to make future NQDC payouts. This allows the company to offset the unfunded future liability. Methods include purchasing corporate-owned life insurance (COLI) on a participant or directly purchasing mutual funds. If you want to defer the taxes on the compensation, your company cannot directly fund the plan.



The content on myNQDC.com is provided as an educational resource. myNQDC.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon. Copyright ©2025 myStockPlan.com, Inc. Please do not copy or excerpt content from this website without the express permission of myStockPlan.com Inc. Contact editors@mystockoptions.com for licensing information.