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Financial Planning : Advanced
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Opportunities And Risks: The Role Of Nonqualified Deferred Compensation In Your Financial Planning (Part 3)
by John Lawson

The opportunity to participate in your company’s nonqualified deferred compensation (NQDC) plan can provide you with the wealth to meet many of your financial goals, including a comfortable retirement. However, participation is not simple, and the choices you must make can seem confusing. Part 3 of this series explores investment choices, risks, and death issues.

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More Articles:
Scenarios For Maximizing Nonqualified Deferred Compensation (Part 2)
The Growing Importance Of Nonqualified Deferred Compensation Amid Tax-Rate Changes
UPDATES! College Financial Aid & Funding With Nonqualified Deferred Compensation (Part 2): Tax Aid & Cash-Flow Planning
UPDATES! College Financial Aid & Funding With Nonqualified Deferred Compensation (Part 1): Planning Your Deferrals
Participant Viewpoint: Tax Strategies With Stock Options, Restricted Stock, And Deferred Compensation
UPDATES! Tax Reform And The Impact On Nonqualified Deferred Compensation Plans
UPDATES! Tax Reform: Good Or Bad For Pretax Compensation Deferral?
FAQs
Does the money in my NQDC plan count in the calculation when I convert a traditional IRA to a Roth IRA?

Upon your conversion from a traditional IRA to a Roth IRA, you owe income tax on the percentage…

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Can income from my NQDC distribution alone qualify me to establish an IRA?

To be eligible to make contributions the tax rules require that you must have "compensation income" that is at least equal…

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More FAQs:
Can I use my NQDC distributions to fund my living expenses before I reach the age of mandatory IRA and 401(k) withdrawals, and to delay getting Social Security payments?
Which is better: a class-year plan or an account-based plan?
What are class-year plans and account-based plans for deferrals and distributions?
Can I time NQDC distributions to fund my children’s college tuition?
Why did some executives in the past have the ability to receive a lump distribution of all their assets in the NQDC?
Can I roll over my distributions from the NQDC plan into an IRA and keep the tax-deferred status?
I have started receiving Social Security payments. If I start receiving distributions from my NQDC plan, must I still pay Social Security tax on the income? Can this income cause my Social Security payments to be taxed too?
Can I give my NQDC assets directly to a charity or name a charity as a beneficiary under my plan?
How do I decide what investments to select in my NQDC account?
UPDATES! Are there strategies for using the redeferral election?
UPDATES! At year-end, when I am deciding on salary deferrals into my nonqualified plan for the year ahead, what should be the top issues in my decision-making?

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