Hide login
Glossary of Terms
S
Username

Password

Not Yet Registered?
You can have access to our in-depth exclusive content on NQDC in just a few clicks.
X
Forgotten 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.