How To Completely Master Your Equity Compensation: Exploring NQDC Plans
In our last post, we reviewed the intricacies of Restricted Stock Units (RSUs). In part two of our mastering equity compensation series, we jump into the world of NQDC plans. Nonqualified deferred compensation plans (NQDC) are a type of employee retention benefit that allows certain employees to defer a portion of their pay until a later date. You might be asking yourself, why on earth would I do that? If you are earning more than $200,000, you should consider investment options over and above your typical 401(k). Since a 401(k) is limited to $19,500/year(2021) contribution, a high earner will only be able to defer a small fraction of their pay. NQDC plans are perhaps a perfect example of delayed gratification. These plans allow an employee to earn benefits (i.e., cash, bonuses, wages, equity compensation) from their employer in one year and receive the income in another. The best part? The taxes…
K-12 Education Savings Vehicles You Need To Consider
K-12 expenses are incurred in a short time frame. This will impact the way you save and require a more conservative investing strategy.