Nonqualified Retirement Plan Features Checklist

Summary

This checklist identifies the benefits of nonqualified plans, with a focus on retirement-type plans intended to provide key executives with enhanced retirement benefits. The checklist focuses particularly on supplemental executive retirement plans (SERPs) which are one type of nonqualified deferred compensation (NQDC) plan. SERPs often supplement retirement benefits provided under a separate broad-based tax-qualified defined benefit pension or defined contribution plan also sponsored by the employer. The checklist also identifies ways in which Section 409A compliance will be important in designing and administering these plans. Section 409A was added to the Internal Revenue Code by section 885 of the American Jobs Creation Act of 2004, Pub. L. No. 108–357.