Introducing the Nonqualified Plan Exit Strategy to Mitigate FIVE Perpetual Risks

A Deal Worth Your Consideration: A carefully structured NQDC Exit Strategy can provide a tax‐efficient alternative to installment distributions from a nonqualified deferred compensation plan. This strategy can eliminate the five significant risks of NQDC plans and put the executive in control of their assets.

Executives can exit heavily taxed retirement benefits for uniquely designed tax‐favored life insurance funded contracts on the life of the executive or the executive and his or her spouse. The Exit Strategy introduces important financial, tax, and accounting considerations potential participants and outside advisers must evaluate.

The NQDC Exit Strategy has the potential to create greater after‐tax income at retirement over what the executive could do on their own using a combination of NQDC distributions and an individual investment portfolio.