Non–qualified plans are retirement savings plans. They are called non–qualified because they do not adhere to Employee Retirement Income Security Act (ERISA) guidelines as with a qualified plan. Non–qualified plans are generally used to supply high-paid executives with an additional retirement savings option.

Under this plan, the business enters into an agreement with an executive to pay (via a bonus) all or part of the premiums for a life insurance policy or annuity contract owned by the executive. This bonus is tax deductible to the employer and taxable to the employee.

A deferred compensation plan withholds a portion of an employee’s pay until a specified date, usually retirement. The lump sum owed to an employee in this type of plan is paid out on that date. Examples of deferred compensation plans include pensions, retirement plans, and employee stock options.

Premium financing is a strategy whereby a qualified borrower accesses third-party financing to pay for large life insurance premiums. The insurance companies have constructed specific products for these financed plans to minimize outside collateral and maximize returns.

Succession planning is a process for identifying and developing new leaders who can replace old leaders when they leave, retire or die. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

Rule 10b5–1, established by the Securities and Exchange Commission (SEC) in 2000, allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. … Rule 10b5–1 allows major holders to sell a predetermined number of shares at a predetermined time.