Non-qualified Plan
A nonqualified plan is a pension, profit sharing, annuity, or other deferred compensation arrangement that does not meet the qualification requirements of the IRC, such as the provisions on nondiscrimination, eligibility, funding, and vesting. Since qualified plans may not, in some cases, be used effectively to provide compensation for executives and other key employees, nonqualified deferred compensation arrangements can be creatively utilized as supplemental plans.
