Customized solutions for select employees
Non-Qualified Retirement Plans are designed to address the retirement needs of a selected group of employees, providing benefits beyond those available in a qualified retirement plan.
As the cost of living continues to increase over the years, it becomes more difficult to maintain the same lifestyle after retirement, especially for highly compensated employees who mostly rely on traditional retirement plan options offered by their employers.
A Deferred Compensation Non-Qualified Plan is an employer-sponsored retirement plan that may fall outside of federal and state regulations imposed on traditional plans that often limit the amount an employee can contribute each year.
Our Popular Fiduciary Services Division provides flexible non-qualified plan options that make it easier for employers to offer this type of savings tool to a select group of employees like, for example, senior executives.
Advantages for the employer
Offering your key staff the unique benefits of a non-qualified plan will help you attract and retain talented professionals. It is a great negotiating tool during recruitment and a truly valuable reward for employees who have excelled in their collaboration with the company, thus making it easier to recruit experienced professionals.
Advantages for the employee
Due to increases in cost of living or inflation over time, employees will need to replace between 85% to 100% of their pre-retirement income to maintain their current lifestyle at retirement. This is why offering your key employees the opportunity to participate in a non-qualified retirement plan will be a much-appreciated reward. This excellent tool will provide them with:
With over 50 years’ experience as leaders in fiduciary and investment services for retirement plans in Puerto Rico, Popular offers more options and the convenience of easily managing your retirement plans.
Check out our informative articles about retirement.
Discover the reasons behind proper retirement preparation.
The investment products available through retirement plans of Banco Popular are not insured by the FDIC, are not deposits or obligations, are not guaranteed by Banco Popular de Puerto Rico or its subsidiaries and/or affiliates. Investment products involve risks, including the possible loss of the invested principal. Please request a prospectus and read it carefully before investing.
The content of this material is for informational purposes only and does not constitute tax, legal or accounting advice. Banco Popular de Puerto Rico, its subsidiaries, or affiliates, do not engage in the offering of tax, legal or accounting advice.
Contributions exceeding the deductible limit will pay a tax equivalent to 10% even if the non-deductible contribution is not claimed as a deduction on your income tax return. For 2018 to 2024 tax years, the maximum annual employer and employee contribution amount per participant will be the lesser of $69,000 or 100% of the participant’s compensation. Also, the maximum compensation per participant to be used for determining contributions to the plan shall not exceed $345,000.
