Executive Benefit Services

Executive Benefit Overview

Executive benefit plans are a valuable supplement to a company’s benefit plan package. Not only do they help to retain and reward key executives, but it also gives employers an edge when attracting and recruiting new talent.

Executive benefit plans allow key executives the most effective way to accumulate wealth and save for a retirement suitable with their current lifestyle. Business owners can also pick and choose who participates in the plan and can customize a specific plan for each executive. Nonqualified plans also provide significant tax advantages, both for employees and businesses. Often, plans can be designed with no impact to the company balance sheet, and over time can actually improve it.

While Executive benefit plans come with less red tape than stock or qualified plans, it is important to use a firm such as Pen-Cal that specializes in administering your plans. Executive benefit plans are covered by section 409A of the tax code, meaning that they require an experienced advisor who can avoid potential penalties or unexpected taxation to both participants and plan sponsors.