Deferred Compensation

Deferred compensation is an arrangement wherein a portion of your income would be kept and paid on a later date instead of having it all at once. This helps you continuously save money for your retirement and other needs. Participating in a Deferred Compensation Plan can help you in reaching your retirement goals.

There are two main types of Deferred Compensation – Qualified and Non-qualified

Who should be considered for these types of plans

As a highly paid executive or key person, how can you put more compensation away to help fill the short fall in retirement from your qualified plans? As an employer, what other benefits can you offer to help ensure the continued loyalty of this executive or key person? A properly structured deferred compensation plan can accomplish both – “Earn now, Pay Later”

What is a Deferred Compensation Plan

• Employer and Employee enter into agreement to defer a portion of employee salary
• Contributions(s) can be based on specific retirement income or amount employee can afford
• Non-Qualified plans offer employers ability not to include rank and file
• Pre-retirement death or disability can be included in as part of plan

Benefits of a Deferred Compensation Plan

• Flexibility for employers
• Supplemental income for key employees
• Tax deferred growth if used with life insurance
• Tax deduction for employer when benefits are paid

Innovative Financial Group has the experience to find an appropriate plan for you and your company. With subject matter professionals, we can help to make this an easy and rewarding process which can provide confidence. Call us today for a complimentary conversation regarding your concerns and see how we can be of service.