A non-qualified plan is designed to
enhance the current benefit program for either one individual
employee or select group of employees. These plans are tailored
to the needs of the interested parties. The employee(s) is/are
generally provided a deferred benefit, which becomes taxable
at the time it is received. The employer generally may deduct
its contribution to a nonqualified plan in the year in which
the deferred benefit becomes taxable to the employee.