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Nonqualified Retirement Plans: Overview, Types, Pros & Cons

By Kailey Hagen – Updated May 2, 2025 at 11:31PM

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.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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