The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

NON-QUALIFIED DEFERRED COMPENSATION (NQDC) Definition & Legal Meaning

Definition & Citations:

A retirement contribution that the employee has earned, but which is yet to be paid by the employer. It is not taxable as it has yet to be received. Employees with high salaries are beneficiaries of this compensation due to the limit imposed on standard pension and tax qualified profit sharing plans. As such compensations do have the same tax benefits as a qualified retirement plan, they are referred to as ‘non-qualified’.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.