Nonqualified Deferred Compensation (NQDC) plans are employer-sponsored programs that allow employees to defer a portion of their income until a later date, typically retirement. These plans are “nonqualified” because they do not meet the qualification requirements of ERISA (Employee Retirement Income Security Act) that apply to qualified retirement plans like 401(k)s or pension plans. NQDC […]

Profit sharing plans are employee benefit programs that allow employers to share a portion of the company’s profits with employees. These plans are designed to provide financial incentives and align employee interests with company performance. Here are the key features and components of profit sharing plans: 1. Eligibility: 2. Employer Contributions: 3. Allocation Method: 4. […]

An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that allows employees to become partial owners of the company they work for by acquiring shares of the company’s stock. ESOPs are designed to provide employees with a direct stake in the company’s success and align their interests with the company’s long-term performance. Here […]

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services in the United States. It is similar to a 401(k) plan in the private sector but is available exclusively to those who work for the federal government. The TSP offers eligible participants a way […]