Most companies that offer retirement plans do so with a 401(k) or profit-sharing plan. While these plans are great for the majority of employees, they are limited for business owners and their highly compensated employees. That’s because rules governing most qualified plans don’t allow employers to discriminate between employees. Additionally, these plans restrict the amount of contributions that can be made by highly compensated employees and business owners.

Fortunately, Executive Benefit Plans like non-qualified deferred compensation plans may play a valuable role in closing the “retirement gap”. They allow executives to put away the amount they will need for a retirement suitable with their current lifestyle. And unlike qualified plans such as the 401(k) and profit-sharing plans, business owners have the added flexibility to limit participants. These plans provide tax-advantages, both for employees and businesses.

Non-qualified plans can also include benefits like life insurance, disability insurance, and long-term care insurance.

As business owners ourselves, we understand the challenges associated with saving for retirement while trying to build a successful practice.