View Poll Results: Is NQDC option good
Yes (this is amazing deal for ME)
4
7.14%
No (what a sham for ME)
32
57.14%
Maybe, cuz I’m old-ish and it could work out
10
17.86%
Maybe, cuz I’m relatively young or a baby and don’t mind a little side gamble
10
17.86%
Multiple Choice Poll. Voters: 56. You may not vote on this poll
NQDC
05-14-2025 | 10:43 AM
#11
Line Holder
Joined: Feb 2007
Posts: 1,077
Likes: 3
I have a lot of questions about this plan and will look forward to a Q&A. Could be interesting from a tax perspective if you knew you were going to kill it the next calendar year so you could defer some then take it easy subsequent year and live off some of it and pay overall less taxes. Not sure if that’s an option though and you’d have to know in advance that you could kill it that year (not always obvious). Also, I would wonder if the deferred comp counts into your disability calculation in such a situation.
05-14-2025 | 11:24 AM
#13
Gets Weekends Off
Joined: Apr 2018
Posts: 4,043
Likes: 362
Because it could be very beneficial in controlling your tax bracket if the risk of the company not remaining solvent during your distribution timeline is acceptable to you. If you are planning on having lots of active tax losses next year for example, you should defer as much compensation as you can this year to be distributed the following year to be offset by those planned tax losses and therefore taxed less.
This all depends on how much we can fine tune the distribution schedules in our plan. We'll have to read more details when we get them.
This all depends on how much we can fine tune the distribution schedules in our plan. We'll have to read more details when we get them.
05-14-2025 | 04:19 PM
#15
Gets Weekends Off
Joined: Sep 2013
Posts: 6,495
Likes: 227
From: Sitting SC at the Five Towns
How is this any different from allowing us to exceed our 401k contribution limits? (Other than the company being in possession of the fund with the commensurate risk, allowing is to withdraw it at any time, and index fund-only choices.)
05-14-2025 | 04:27 PM
#16
Gets Weekends Off
Joined: Apr 2007
Posts: 5,479
Likes: 383
Go back and read the fine print. Pretty sure you have to commit to a withdrawal plan prior to contributing. It's not an on demand withdrawal, but I'd be happy if I were wrong.
05-14-2025 | 04:37 PM
#17
Gets Weekends Off
Joined: Sep 2013
Posts: 6,495
Likes: 227
From: Sitting SC at the Five Towns
How do you plan for weddings and home-buying years in advance? The devil will be in the details.
05-14-2025 | 05:34 PM
#18
Gets Weekends Off
Joined: Apr 2007
Posts: 5,479
Likes: 383
"While NQDCs can be a useful retirement planning tool, they can also be used to plan for any large expenditure (college, wedding, down payment on a home, etc.), unlike most qualified retirement accounts."
How do you plan for weddings and home-buying years in advance? The devil will be in the details.
How do you plan for weddings and home-buying years in advance? The devil will be in the details.
From ChatGPT
Key provision on distributions: IRC §409A(a)(2)(A) outlines the six permissible distribution events: Separation from service Death Disability Specific date or fixed schedule Change in ownership or control Unforeseeable emergency (hardship)
05-15-2025 | 09:59 AM
#19
Line Holder
Joined: Dec 2021
Posts: 224
Likes: 27
05-15-2025 | 10:19 AM
#20
Gets Weekends Off
Joined: Jul 2008
Posts: 5,545
Likes: 285
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