Tax Services:

Non-Qualified Compensation Plans  

Non-qualified compensation plans are compensation arrangements with employees that fall outside the restrictive tax rules that apply to qualified employee plans like most pension and profit sharing plans. They must be carefully crafted in order to ensure that they meet all of the economic and tax objectives of the parties involved. Some plans can affect the benefits available to the employee under the employer’s qualified plans. Others may affect the recipient’s Social Security benefits.

We have extensive experience in helping employers and employees recognize and deal with the subtle tax nuances of these arrangements so that both parties are satisfied with their economic and tax consequences. We provide tax advice on all types of nonqualified compensation arrangements, including the following:

• Rabbi Trusts
• Top Hat Plans
• Supplemental Employee Retirement Plans (SERPs)
• Restricted Stock or Property Plans
• Phantom Stock Plans
• Non-qualified Stock Option Plans
• Performance Share Plans