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’.
Link to This DefinitionDid you find this definition of NON-QUALIFIED DEFERRED COMPENSATION (NQDC) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary