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Benefit Plans

Executive Benefit Plans & Nonqualified Deferred Compensation

Attract, retain, and reward key talent

Executive benefit plans are tax-advantaged savings vehicles that allow organizations to provide supplemental retirement benefits to senior management and key employees beyond the limits of qualified plans. These programs are essential tools for attracting, retaining, and rewarding top talent.

Unlike 401(k) plans with their annual contribution limits, nonqualified plans offer unlimited deferral opportunities, flexible vesting schedules, and selective participation—allowing employers to design customized programs for their most valued executives.

Why Nonqualified Plans?

Executives face significant limitations on tax-advantaged savings: 401(k) contributions are capped and the IRS limits compensation for qualified plan calculations.

Nonqualified plans bridge this gap, allowing key employees to defer additional compensation and employers to provide competitive supplemental retirement benefits.

Plan Types

Executive Benefit Structures

IIG designs and implements a range of executive benefit programs, each tailored to meet specific organizational objectives and participant needs.

Nonqualified Deferred Compensation (NQDC)

Allows executives to defer compensation beyond 401(k) limits with no maximum contribution cap. Deferred amounts and earnings remain tax-free until distribution.

  • No contribution limits
  • Tax-deferred growth
  • Flexible vesting schedules
  • Selective participation

Supplemental Executive Retirement Plans (SERPs)

Company-funded retirement benefits that supplement qualified plans. Can be designed as defined benefit (target income replacement) or defined contribution structures.

  • Defined benefit or contribution
  • Target income replacement
  • Life insurance funding
  • Death benefit provisions

Split-Dollar Arrangements

Shared premium and benefit structures between employer and employee. Provides life insurance benefits with favorable tax treatment and superior benefit security.

  • Shared costs and benefits
  • Policy owned by participant
  • Alternative to restricted stock
  • Favorable for tax-exempts

Section 162 Bonus Plans

Simple executive bonus arrangements where the company pays life insurance premiums as taxable compensation. Easy to implement with minimal administrative burden.

  • Simple implementation
  • No IRS filing required
  • Immediate tax deduction
  • Flexible design options

Our Expertise

IIG's Executive Benefit Services

IIG provides comprehensive executive benefit consulting, from initial plan design through ongoing administration. Our experienced team works closely with your organization to develop programs that align with your strategic objectives and provide meaningful value to participants.

We specialize in integrating COLI funding strategies with executive benefit plans, helping organizations manage costs while providing competitive compensation packages that attract and retain top talent.

Full-Service Support

Plan design and consulting
409A compliance review and documentation
COLI funding strategy and implementation
Rabbi trust establishment and administration
Ongoing plan administration and reporting
Participant communication and education
Death claim processing and benefit distribution

Design Your Executive Benefit Program

IIG's experienced team can help you design, implement, and administer executive benefit programs that support your talent strategy and organizational objectives.

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