owners  a few key personnel.  There are also two types of non-qualified plans  called bonus plans and entity arrangements.  Bonus plans shift the  current compensation from the executive to the employee at intervals  instead of on a deferred basis.  Entity arrangements are when the  employer maintains their promise by continuing the employee's salary  after they retire or deferring their salary from the present to  another term, whether short, medium or long.<BR>
            </p>
            <p ALIGN="JUSTIFY"><em>Qualified  Retirement Plan</em><BR>
            </p>
            <p ALIGN="JUSTIFY">A  qualified retirement plan follows the guidelines set forth in the  Code and all its regulations.  Qualified retirement plans must be  applied uniformly, rather than in a discriminatory fashion like  non-qualified plans.<BR>
            </p>
            <p ALIGN="JUSTIFY"><strong>Taxes  With Deferred Compensation</strong><BR>
            </p>
            <p ALIGN="JUSTIFY">When  benefits are received under a non-qualified retirement plan, they  become taxable.  With a salary continuation plan, an employee has no  taxable income as a result of participating in the plan.  When an  executive gives bonuses to employees, the income is realized for tax  purposes at the time the bonus is received.<BR>
            </p>
            <p ALIGN="JUSTIFY"><strong>Why  A Deferred Compensation Plan is Necessary</strong></p>
            <p ALIGN="JUSTIFY">According  to the US Bureau of Labor Statistics Consumer Expenditure Survey, the  average person over 65 spends $25,275 annually to live including  housing, food, utilities and health care.  The National Vital  Statistics Reports Vol. 48, No. 18, reveals people can expect to live  at least 15 years beyond 65.  Deferred compensation offers a variety  of benefits including:</p>
            <p ALIGN="JUSTIFY">-  a steady investment pace that buys less stocks when they rise lowers  the average cost related to investing;</p>
            <p ALIGN="JUSTIFY">-  the ability to plan for retirement and the increased cost of living  rather than feeling anxious about it;</p>
            <p ALIGN="JUSTIFY">-  pay is deferred to investment options before taxes come out, offering  a tax advantage by reducing taxable pay;</p>
            <p ALIGN="JUSTIFY">-  the cost of living rapidly increases and deferred compensation  ensures payment even after a person is unable to work.</p>
            <p ALIGN="JUSTIFY"><strong>The  Way Deferred Compensation Works</strong></p>
            <p ALIGN="JUSTIFY">By  investing in a tax-deferred account, more money is put into  retirement and savings.  Employees do not have to pay taxes on the  earnings or interest in a deferred compensation account, which  compound without being taxed to maximizes savings the longer the plan  is in effect. The younger a person is when they start a deferred  compensation account, the more money they will have to face  retirement and the expenses of old age.</p>
            <p ALIGN="JUSTIFY">Deferred  compensation is an outstanding way to plan for the future without  paying exorbitant taxes. </p>
            <p ALIGN="CENTER"><br>
              </p>
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