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Executive Retirement Plans vs 401 K Plans

Task: Compare Supplemental Executive Retirement Plans with 401 K Plans. Make sure to cite any references used.

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Compare Supplemental Executive Retirement Plans with 401K.


Supplemental Executive Retirement Plans, also called SERPS. "The tax code sharply limits the ability of highly compensated executives to defer compensation under a qualified retirement plan. For example, compensation in excess of $170,000 must be completely disregarded for benefit accrual purposes under qualified pension or profit-sharing plans." McCord (2000) SERPS are also called "top hat plans" as the plans are for the well-off.

Supplemental Executive Retirement Plan

Companies are able to limit payments on basic pension plans by creating a Supplemental Executive Retirement Plan. The corporation's top executives determine the executives who will take part in the ...

Solution Summary

In about 435 words, with references, this solution addresses Executive Retirement Plans and compares them with 401K Plans.