A nonqualified deferred compensation (NQDC) plan is an elective or non-elective plan, agreement, method, or arrangement between an employer and an employee (or service recipient and service provider) to pay the employee or independent contractor compensation in the future.
An overseas retirement plan can provide a legal and tax compliant NQDC personal investment structure, that enables an individual who takes the time and pays the expense to create, a way to defer income tax and capital gains tax, until after the completion of the plan, or liquidation and repatriation of those assets.
A person is in the 24% tax bracket goes out and hires an Attorney that cost $20,000.00 that means his actual out of pocket cost is about $26,000.00; The price to set-up our recommended program is $25,000.00 and could be paid out of pre-tax deferred income contribution.
Here are the two most egregious myths.
Myth No. 1
There is no economic advantage to deferring income tax. Whether you get paid now or later, you end up with the same amount of money (That statement is a Myth).
Myth No. 2
Deferrals must be structured as a fixed annuity. (That statement is a Myth)
Attached chart comparison shows Non-Qualified Deferred Compensation (NQDC) growth values beats everything else.
NQDC Growth Chart
Where money is invested or how it is invested is not a tax or exchange control issue it is a matter for your own good judgement and control Old financial strategies for hiding offshore no longer work:
- International regulatory exchange of information agreements directly target ”hiding behind” foreign financial account entities
- Trusts, Foundations, IBC, LLC and Life Insurance Policies are now a red flag pointing at you
- The PRC. USA, O.E.C.D and 13 other countries seek out and share financial account reporting
- The International Monetary Fund and the World Bank seek out illicit transfer of money abroad
- The intermediaries dealing in entities abroad are themselves committing criminal offense