Non-Qualified Deferred Compensation

Because of restrictions imposed by congress, tax qualified retirement plans generally do not meet the needs of business owners and highly paid employees. Regulations like the limit on benefits from tax qualified pension plans and the special rules concerning 401(k) participation cripple the effectiveness of these plans and end up lowering retirement income to unacceptable levels. But deferred compensation arrangements can reverse this discrimination and help highly paid executives reduce taxes and increase retirement savings.

Deferred compensation plans allow participants to invest with pre-tax dollars in non-qualified retirement accounts, so 100 percent of the deferred amount is put to work. Moreover, since taxes on the earnings are deferred as well, money quickly grows in the executive's account. Non-qualified deferred compensation plans are also extremely flexible. The company determines who can participate and the level of participation. Contributions can be made by plan members, the company or both. Plus, employer contributions can be based on annual compensation or include bonuses tied to years of service, profits, stock price, and so on.

Properly set up, deferred compensation plans are powerful recruiting and motivational tools with little or no cost to the company. Other non-qualified benefit solutions the Chapman Financial Group offers include excess plans, supplemental executive retirement plans, supplemental 401(k) Plans, Post -tax deferral plans.

The representatives of Chapman Financial Group (CFG) are licensed to do business in AZ and CA (Lic. #0D11445, 0381549 ) for Insurance and AR, AZ, CA, CO, FL, HI, IA, ID, KS, MD, MI, MN, NJ, NM, NV, NY, OH, OR, PA, TX, VA, VT, WA, WI and WV for a securities business. Fee-Based Planning offered through Zenith Enterprises, Inc, a state of CA Registered Investment Advisor. Third Party Money Management offered through ValMark Advisers, Inc. a SEC Registered Investment Advisor Securities offered through ValMark Securities, Inc. Member FINRA, SIPC 130 Springside Drv, Ste 300 Akron, OH 44333; 800-765-5201 www.FINRA.org Chapman Financial Group, Chapman Business Advisory Services, Zenith Enterprises, Inc. and Chapman Insurance Services are separate entities from ValMark Advisers, Inc. and ValMark Securities, Inc.

Any tax advice contained herein is of a general nature and is not intended for public dissemination.
Further, you should seek specific tax advice from your tax professional before pursuing any idea contemplated herein.
This advice is being provided solely as an incidental service to our business as
(insurance professionals, financial planner, investment advisor securities broker.)