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Nonqualified Retirement Plans: Overview, Types, Pros & Cons

By Kailey HagenUpdated May 2, 2025 at 11:31 PM

Key Points

  • Nonqualified plans allow highly compensated employees to save beyond qualified plan limits.
  • Earnings in most nonqualified plans are tax-deferred until withdrawal.
  • These plans are not protected from company creditors in bankruptcy.

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