Anecdotal evidence suggests that nonqualified deferred compensation plans (NQDPs) are on the upswing as highly paid executives and employers grapple with the challenge of supplementing future income from a traditional retirement plan on their own in an environment of low interest rates and rising tax rates.

Advisers can scout opportunities to introduce the idea to clients that may not have yet considered the concept, and possibly assist with investment selection when informal funding arrangements are put in place.

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