Fidelity: Deferred compensation plans: 5 things to know
NQDC plans allow executives to defer a much larger portion of their compensation, and to defer taxes on the money until the deferral is paid.
You should consider contributing to a NQDC plan only if you are maxing out your qualified plan options, such as a 401(k).
Many plans allow you to schedule distributions during the course of your career, not just when you retire, so you can defer compensation to cover shorter-term goals like paying a child's college tuition.
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