Nonqualified Deferred Compensation (NQDC) plans can be a strategic tool in your estate planning toolkit.

Nonqualified Deferred Compensation (NQDC) plans can be a strategic tool in your estate planning toolkit. These plans allow high-earning individuals to defer a portion of their income until a later date, usually retirement, which can provide substantial tax advantages. By deferring income, you can reduce your current taxable income and potentially lower your estate's taxable value. Additionally, NQDC plans can be structured to provide financial security for your heirs, ensuring that deferred payments continue to benefit your family after your passing. Incorporating NQDC plans into your estate plan not only enhances your long-term financial strategy but also supports your legacy goals by providing a steady income stream to your beneficiaries.

If you have questions about Nonqualified Deferred Compensation plans or any other estate planning questions, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.