A nonqualified deferred compensation (NQDC) plan is an arrangement that an employer and employee agree to where the employer accepts to pay the employee sometime in the future. Executives often utilize NQDC plans to defer income taxes on their earnings. They differ drastically from qualified plans, like 401(k)s. As you explore how NQDC plans work and how they compare to qualified ones, you may also consider finding a financial advisor who can give you hands-on attention throughout the process. READ MORE