An executive top-hat plan can be a great way to become desirable to highly qualified executives or supplement a business owner’s compensation. However, these plans are accompanied with a significant downside. Because the plans are generally unfunded, major events at the sponsor, like a sale or insolvency, can decimate a plan and leave participants empty handed. The effect on a top-hat plan when a sponsor liquidates its assets is illustrated by a recent Seventh Circuit Court of Appeals case. Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).
Posts Tagged ‘Crochet’
The Perils of Top-Hat Plans
Posted by William Byrnes on July 22, 2011
Posted in Wealth Management | Tagged: Business, Compensation and Benefits, Crochet, Government, Human Resources, Small business, Top hat, United States | Leave a Comment »
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