Manage Deferred Compensation Plans
Deferred-compensation plans can help corporations retain key corporate leaders while rewarding them for exceptional work. By deferring a portion of an executive's income until after his or her retirement, a company may avoid regulated annual salary caps as well. In addition, the employee can take advantage of the tax-deferred growth of the funds.
A well-constructed trust with an independent trustee is paramount to the success of a deferred-compensation plan. This arrangement transfers direct control of the trust to an independent party and safeguards the agreement between corporation and employee. The trust structure is especially important to effectively manage risk and distribute the funds in an appropriate manner.
AMG National Trust Bank’s Retirement & Benefits group can help you evaluate the benefits of a deferred-compensation plan, design or re-design a plan, act as trustee and provide third-party administration of the plan.