401Klogic LLC.

NonQualified Plan Audit




As you know nonqualified deferred compensation plans (NQDCPs) are a highly specialized executive compensation tool that offers significant benefits to your key personnel. That being said NQDC plans must comply with a wide range of regulations. These rules can impact how plans must be structured and administered, and make regular independent plan audits important to ensure compliance and alignment with corporate objectives. To ensure effectiveness, the audit should be performed by a third party auditor that specializes in deferred compensation plans.


A comprehensive audit will not only present actionable items to consider such as plan design and informal funding strategies but will also contain the evaluation of the plan sponsors’ focus on participant education and communication efforts. The success of a NQDCP depends on many factors , and an audit that takes a holistic view of a plan’s structure , operation and promotion can help identify its strengths and weaknesses and opportunities for improvement.


A NQDCP audit, unlike a 401k audit, takes little time as the only items needed in most cases is a copy of a plan document and a list of the investment funds in the plan, if applicable. If you feel you would like to take advantage of our firm’s audit service please feel free to contact my office directly at 847 441 5223.


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