What is provided with a Nonqualified Retirement Plan?

avie · Apprentice Joined: 16 Apr 2008 Posts: 4

Hello there everyone. My name is Julia and I was wondering if you could give me some help about retirement plans. I heard that there are some Nonqualified Retirement Plans. Can you tell me something about them? What is provided with a Nonqualified Retirement Plan? Thank you for your posts.

terrill · Apprentice Joined: 06 Dec 2008 Posts: 3

Hello Julia. I’ll be glad to help you with it. Nonqualified Retirement Plan is the one that is provided by your employer. Basically, all the payments and other details arranged by him and you have nothing to do with it. Term nonqualified means that you are not qualified for any tax deductions that way. Because you are not making any payments for your retirement plan, you are not liable for any favorable treatment. Basically, that’s it. I hope that I was of some help.

billie1639 · Apprentice Joined: 07 Apr 2007 Posts: 4

Hey Julia. Here’s the thing. With Nonqualified Retirement Plan, pretty much everything is provided, except favorable tax treatement. It is because in this case, your employer makes all the payments, so you do not use your personal income for that purpose. Now, if you have this kind of retirement plan, you will get your money back in form of an annuity, or lump sum. However, you could transfer this to the IRA account which will give you some tax benefits. That would be all from me. Bye!

laurenvander82 · Apprentice Joined: 28 Jun 2012 Posts: 2

Hi, I want to know about retirement plan schemes coming in upcoming month. I am 30 year old and want to stay one step ahead in my life. So thinking about retirement savings or investment for better return in future.

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