Nonqualified deferred compensation plans reduce a portion of an employees’ taxable income in the current year, and is paid out at a date after which the income is actually earned. Examples of deferred compensation include pensions, retirement plans and stock options. M&T Securities can help provide solutions to fund deferred compensation plans using life insurance.
What benefits can your business receive with a nonqualified deferred compensation plan?
- A mechanism to recruit and retain valued executives with an added retirement plan
- Recognize the contributions of key employees with an additional benefit
- Options regarding whether the business or executive pays the premium of a life insurance contract inside of a deferred compensation plan
What benefits will your executives receive with a nonqualified deferred compensation plan?
- Defer taxes on earnings until the executive receives the compensation according to the terms of the plan
- Additional compensation in the form of retirement income
- If funded with life insurance, the plan may provide tax-free death benefit proceeds to the executive’s beneficiary in the event of the executive’s death
Learn more about how life insurance can fund a nonqualified deferred compensation plan. To arrange a convenient appointment, call us at 1-800-724-9949 or visit your nearest M&T branch. You can also “Get Started” on your insurance coverage right now, online.