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What's everyone's thoughts on nonqualified deferred compensation (NQCD) plans? Worth contributing to or no great advantage? And if it's a good option, when would you request distribution?
And another question: I understand that 457bs are a type of NQCDs, but 457bs have an annual contribution limit (I believe $22.5K for 2023) and withdrawal rules similar to 401ks (i.e., 10% penalty if you withdraw before a certain age). The type of NQDC I'm referring to here states no contribution limits and you can choose get your distribution at any age, but once you make that choice, no early withdrawal allowed. Am I right in my understanding that these are two different kinds of NQDCs?
And another question: I understand that 457bs are a type of NQCDs, but 457bs have an annual contribution limit (I believe $22.5K for 2023) and withdrawal rules similar to 401ks (i.e., 10% penalty if you withdraw before a certain age). The type of NQDC I'm referring to here states no contribution limits and you can choose get your distribution at any age, but once you make that choice, no early withdrawal allowed. Am I right in my understanding that these are two different kinds of NQDCs?
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