Final answer:
A Nonqualified Deferred Compensation (NQDC) plan is a type of plan that is not qualified and is usually used for highly compensated employees. These plans allow highly paid employees to defer a portion of their compensation until a later date. One example of an NQDC plan is a Supplemental Executive Retirement Plan (SERP).
Step-by-step explanation:
A type of plan that is not qualified and is usually used for highly compensated employees is a Nonqualified Deferred Compensation (NQDC) plan.
These plans are offered by employers as an additional benefit to highly paid employees, allowing them to defer a portion of their compensation until a later date.
Unlike qualified retirement plans, NQDC plans do not receive the same tax benefits and are not subject to the same regulations.
One example of an NQDC plan is a Supplemental Executive Retirement Plan (SERP), which provides additional retirement benefits to top executives.