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[Music] which retention of key executives being focused on many companies we are seeing increased interest in different forms of supplemental retirement programs the IRS refers to these as non qualified plans and guidance is covered under Code section 409a these plans are more commonly referred to as supplemental executive retirement plan serves or deferred compensation the purpose of these plans is to provide additional retirement benefits to key executives over and above the typical pension or 401k plan a plan document between the company and the executive outlines the provisions of the plan including the benefit formula vesting changes control non-competes etc the company books a liability for the projected benefit and the executive is taxed on the benefit was received the plan benefits can be paid out at any time these plans do not need to be retirement based only generally referred to as in-service payments I find for younger executives this can be an attractive tool we recently
