What is the best way to finance your company’s nonqualified plan?

Given the likely growth in interest in nonqualified plans—driven by rising state and federal taxes and fueled by improved capital markets—we believe that now is a good time for plan sponsors to pause and reassess their approach to nonqualified plan financing.

Nonqualified deferred compensation plans have long been an important tool for companies to attract, retain, and reward highly compensated employees. Due to contribution caps and other limits on qualified retirement plans, nonqualified plans have also become an important retirement savings vehicle, helping to improve key executives’ retirement readiness. While they have taken a backseat to other more pressing issues in recent years, it appears that companies are once again realizing the benefits of these flexible plans.

CAPTRUST has recently released a position paper to discussing the three key decisions related to informal funding—or financing—of nonqualified plan benefit liabilities. With this information, sponsors will be better able to make intentional choices and craft plans that provide attractive benefits without compromising corporate balance sheets or cash flow.

Please visit CAPTRUST's nonqualified website to receive your copy of the position paper.
 

CAPTRUST Des Moines

CAPTRUST’s Des Moines office was created through the acquisition of institutional retirement practice of Holmes Murphy & Associates in December 2010. The office is comprised of a specialty team of institutional retirement advisors with over 60 years of combined industry experience. Our institutional advisors are experts in defined contribution plans—such as 401(k), 403(b), and profit sharing plans—defined benefit plans, and nonqualified deferred compensation plans. Our core institutional services include fiduciary and investment management, participant education and advice, provider due diligence, and vendor management. All services are provided with clear, unbiased advice by our experienced fiduciary partners.

The Des Moines team also offers Private Wealth Services for executives and senior leaders of our institutional clients and affluent investors. With a focus on comprehensive financial planning, we embrace a holistic approach to managing our clients’ investment and insurance needs. Leveraging our institutional-quality investment research, our services are designed to help you confidently grow and protect your financial assets.

CAPTRUST Financial Advisors

CAPTRUST Financial Advisors is an independent investment research and fee-based advisory firm specializing in providing retirement plan and investment advisory services to retirement plan fiduciaries, executives, and high net-worth individuals. Headquartered in Raleigh, N.C., the firm represents $81 billion in client assets with offices in Alabama, California, Florida, Georgia, Iowa, Maine, Massachusetts, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Pennsylvania, Texas, Virginia, and Washington, DC. To learn more, visit www.captrustadvisors.com or www.captrustnonqualified.com.