Another option once key employees max out their qualified plan

Even if you already offer a traditional 401(k) plan, you may want to give your key employees a little more incentive to stay with your business. A supplemental retirement plan gives your top employees a chance to save more once they’ve maxed out their contribution to a qualified plan, which can increase engagement and retention.

As the employer, you’ll have the flexibility to choose either a fixed-dollar benefit amount or a formula-based benefit amount for your employees, based on participant compensation and/or years of service. You can also design the plan to provide reduced benefits if the employee separates from service before retirement age. You can even match employee contributions for additional tax breaks and more of a reward.

Nationwide supplemental retirement strategies

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NQDC plans let your key employees defer more current compensation until retirement.

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A SERP is a form deferred compensation plan corporations often use as a way to recruit, reward and retain key executives.

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This can help cover financial losses in the event of a key contributor's death.