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Deferred Compensation Plans

Benefit:

  • Help recruit and retain talented employees with tax-beneficial compensation
  • Potential to increase cash flow by lowering salary costs while still providing attractive compensation
  • Create customized compensation plans for key executives or others

Who's most likely to benefit:

  • Organizations which need to offer a competitive compensation package – almost every organization
  • Organizations which seek to create an additional type of compensation for specific employees
  • Organizations which seek to increase retention of key employees
  • Organizations with high turnover in key positions seeking to create long-term retention incentives

Description:

Deferred compensation describes almost any type of compensation which is not paid to the employee at the time it is earned, but instead "deferred" – typically, to provide benefits to the employee. Plans can be designed to be tax-qualified like 401(K), 457 or 403(b); or non-tax-qualified like top hat, golden handcuffs, or excess benefit plans. To develop an appropriate plan, AGH Employer Solutions' advisors meet with you to determine the organization's goals in setting up a deferred compensation structure. Are you seeking to offer more competitive compensation without increasing salaries? To retain key executives over a period of time? To offer owners or key leadership additional compensation?

Our advisors can help you develop and implement a deferred compensation plan which complies with ERISA, DOL and IRS regulatory requirements as well as recognize the limitations and qualifications such plans may have. In addition to the most common types of deferred compensation plans, we have experience in setting up more complex plans such as "rabbi trusts," taxable trusts and bonds.