Selective plans provide retirement benefits and in some cases supplemental death benefits to select key employees and can be used to replace or enhance group or tax-qualified retirement benefits.

The tax advantages are generally not as immediate as they are with qualified plans, but non-qualified plans are not subject to the strict rules governing qualified plans.

Two broad categories cover most non-qualified executive benefit plans based upon whether the benefits provided are in lieu of, or in addition to, current compensation. These are deferred compensation plans and supplemental employee retirement plans, respectively.

Non-qualified executive benefit plans are unfunded, from a tax standpoint. The business can choose to set aside funds or to purchase assets, such as life insurance, to informally finance the benefit. However, the benefit is provided strictly from the assets of the business—not from any separate fund. A WSA Financial Specialist can consult with you on your options and provide you with a detailed analysis of possible solutions.

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Advisor. Warren Steinborn Associates and NPC are separate and unrelated companies.
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