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Section 401(k) mirror plan

A type of nonqualified deferred compensation plan that allows you to defer amounts over and above the maximum contribution amount of a qualified 401(k) plan: $18,500 in 2018, plus a yearly catchup contribution of $6,000 if you are at least 50 years old. This type of 401(k) plan or an excess plan may be available if you are ineligible to participate in a qualified 401(k) because of the nondiscrimination testing rules, or if you have reached other 401(k) limits. Investment options may be similar to the qualified 401(k) or other types of investments, or may be just a set crediting rate. However, these are hypothetical investments. The plan is coordinated with the qualified 401(k) plan so that the right to make deferrals and any matching contributions to this nonqualified deferral plan does not start until you have made the maximum elective deferrals under a qualified 401(k) plan. This can also be called a 401(k) overlay plan, a supplemental 401(k), a 401(k) excess plan, a nonqualified 401(k), a 401(k) restoration plan, or a 401(k) wraparound plan.