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1.) why is a non-qualified plan better for highly compensated executives then a qualified plan?

1.) why is a non-qualified plan better for highly compensated executives then a qualified plan?

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Answer #1

Non qualified plans is better for highly compensated executives than a qualified plan because, Nonqualified plans don't have a maximum contribution amount. Employees and employers can contribute as much as they would like. Highly paid employees may have lower maximum contribution limits in their company retirement             plan due to IRS rules surrounding "highly compensated employees." Non-qualified plans allow higher paid employees to save more for retirement and live a similar lifestyle as they currently enjoy.

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