As cost of living continues to increase over the years it is quite difficult to maintain the same lifestyle after retirement, especially for highly-compensated employees who rely primarily 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 upon traditional plans that often limit highly-paid employees on the amount they can contribute annually.

These plans are designed to satisfy the retirement needs of key executives and other highly-compensated employees, providing benefits beyond those available in a qualified retirement plan.

Popular Fiduciary Services provides flexible non-qualified plan option that makes it easier for plan sponsors to offer this type of comprehensive savings tool to a select group of employees.

Advantages for you as the Employer

Offering your key personnel 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 productivity. Furthermore, participation in a non-qualified plan broadens your company’s compensation package, thus facilitating midcareer recruiting as well.

Tax deferment, substantial flexibility, and minimal reporting and filing are some of the additional advantages offered by non-qualified plans to employers like you.

Advantages for the Employee

To maintain their current lifestyle at retirement, employees will need to replace between 85 and 100 percent of their pre-retirement income due to increases in cost of living or inflation over time.

This is why offering your key employees the opportunity to participate in a non-qualified retirement plan will be a much appreciated reward. You will be offering them a great tool that provides them with:

  • Additional investment for retirement, in excess of those permitted in qualified retirement plans;
  • Ability to defer taxes on current compensation, if the plan provides them
  • Freedom from the caps imposed by regulations on qualified plans in terms of compensation, contributions, deferrals, and benefits
  • Quarterly statements
  • Flexibility on various withdrawal strategies
  • Flexibility of investment options

Why Popular

With over 30 years experience leading fiduciary and investment services for retirement plans in PuertoRico, Popular provides you with more options and the convenience of an easier management of your non-qualified retirement plans.

  • A pre-established plan that can be adapted to your corporation’s circumstances;
  • Online access 24/7 at popular.com/401k;
  • English and Spanish speaking representatives through our call center;
  • Education program for participants;
  • A wide variety of investment options.

For more information, please contact us at 787.724.3657 (select option #2 three times) or online. To manage your account online, you may visit popular.com/401k

1Contributions to a Non-Qualified Plan may be invested in Investment Products that are not insured by the FDIC; are not deposits or obligations of, are not guaranteed by Banco Popular de Puerto Rico or its subsidiary and/or affiliates. Investment products involve risks, including the possible loss of the principal invested. Non-Qualified Plans may establish conditions for some transactions, which will vary from plan to plan. For more details, please contact the Popular Fiduciary Services sales team.

The content of this material is for informational purposes only and does not constitute accounting, legal or tax advice. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates, do not engage in the offering of accounting, legal or tax advice. If accounting, legal or tax assistance is required, the services of a competent professional should be sought.