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Personal Finance

What is a non-qualified deferred comp (NQDC) plan?

Quick Answer

A non-qualified deferred compensation (NQDC) plan lets executives defer salary or bonuses with no IRS dollar cap. The trade-off: deferred money remains an unsecured promise — if the company goes bankrupt, you stand in line behind general creditors.

NQDC plan structure — unlimited deferral but creditor risk to participant.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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