Under a nonqualified deferred compensation (NQDC) plan, your company may offer you the opportunity to defer receiving (and paying taxes on) more of your salary and bonus than you can contribute to your 401(k) plan. The NQDC plan itself can have more variety and scope for customization than 401(k) plans do, but you must follow the rules to avoid tax problems. This article looks at what you need to know about the plan itself, and the rules, before you decide to participate.

IRS Form W-4 determines how much federal withholding tax will be deducted from your paycheck, at least from your salary. You want to submit a new Form W-4 to adjust your withholding whenever your personal or financial situation changes. In 2020, the IRS introduced a revised Form W-4 that…

Alert: At year-end, many participants in nonqualified deferred compensation (NQDC) plans must decide how much of next year’s salary to defer. Factors in this decision include the IRS limits on contributions to qualified retirement plans, and this year also the outlook for tax rates in 2022 and/or beyond under legislation in Congress. The IRS just set the qualified plan limits for 2022…