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Taxes : Basics
Articles
by Bruce Brumberg

Under a nonqualified deferred compensation (NQDC) plan, your company may offer you the opportunity to defer receiving (and paying taxes on) more of your salary and bonus than you can contribute to your 401(k) plan. The NQDC plan itself can have more variety and scope for customization than 401(k) plans do, but you must follow the rules to avoid tax problems. This article looks at what you need to know about the plan itself, and the rules, before you decide to participate.

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FAQs

Your decision about how much of next year’s salary to defer through a nonqualified plan can be influenced by the contribution and benefit limits that apply to qualified retirement plans…

The Tax Cuts & Jobs Act took effect on January 1, 2018. It keeps seven tax brackets, reducing the rates and changing the income thresholds that apply. The new rates are…

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Quiz
Know the facts about tax? Test yourself on NQDC taxation.