From the June 2007 issue of Investment Advisor • Subscribe!  A
Win-Win Retirement Plan  How a restrictive executive bonus
arrangement benefits everyone  More On Tax Planning  from The
Advisor's Professional Library  In recent years, the country has
seen a significant shift with regard to retirement, placing the
onus on employees to rely on self-funded defined contribution
and other qualified plans, such as 401(k)s, instead of pensions
that may guarantee payments to retirees for life. Nonqualified
benefit plans are great opportunities for executives and highly
compensated employees who have maximized their qualified plan
contributions and are looking for additional benefits to
stimulate retirement savings. These benefit plans are also
attractive recruiting and retention tools for employers.
However, many small- and mid-size business owners find it
challenging to build a competitive benefits package for
executives. While qualified retirement plans enjoy preferential
tax treatment, the plan must also be open to