The popularity of Executive Benefit Plans is increasing rapidly as corporations seek to allow executives the opportunity to defer income and achieve a multitude of objectives. The plans assist executives by eliminating testing that has been created by government limitations over the last several years.

Houghton Financial Partners offers Executive Benefit Plans in the form of non-qualified Executive Benefit Plans, which are commonly referred to as 401(k) Overlay Plans, Deferred Compensation Plans, Income Deferral Plans, and Selective Compensation Plans, but may also be identified by other unique names. These plans focus on eligible income that is subject to deferral such as salary or bonus compensation; however, additional objectives include the following:

• Replace benefits lost as a result of lower governmental limits.
• Enable participants to defer tax on compensation.
• Assist executives in creating additional retirement income.
• Provide benefits based on base compensation, bonuses or awards.
• Retain key executives.
• Attract mid to late career employees.

These types of non-qualified Executive Benefit Plans are exempt from the requirements of ERISA, with the exception of a one-time notification to the department of labor at the plan's inception, as long as they are confined to managerial or highly compensated groups. Each solution is customized to meet your corporation's goals and objectives.