Graystone Consulting has extensive experience helping organizations stay competitive with a nonqualified deferred compensation (NQDC) plan designed to help recruit, retain, and reward executives. We leverage decades of experience serving as trusted advocates and consultants to guide plan sponsors on strategy, targeting and to help maximize effectiveness of their benefit programs. We also offer individualized support to help executives and key employees reach their financial goals.
In addition to consulting, our NQDC recordkeeping platform was developed to handle the unique requirements of a NQDC plan. We can help you review and evaluate available plan designs and informal funding strategies through a needs-based assessment. Together, we’ll review your plan objectives, analyze performance metrics, and explore informal funding options that align with your NQDC plan goals.
After a thorough evaluation, we’ll help customize a strategy to informally fund your plan that’s backed by our investing acumen and leading Morgan Stanley research.
Check the background of our Firm and Investment Professionals on FINRA's Broker/Check.*
Nonqualified deferred compensation plans established by private sector employers are generally designed to comply with an exemption under ERISA, which exempts such plans from many (or potentially all) of ERISA’s requirements for employee benefit plans. Failure to comply with an available exemption under ERISA will generally cause the plan to be subject to potentially onerous ERISA requirements and may result in adverse consequences if those ERISA requirements are not met.
Nonqualified deferred compensation plans are generally subject to section 409A of the Internal Revenue Code, along with other federal tax rules, which impose specific requirements on such plans (including, but not limited to, specific requirements concerning deferral elections and the time and form of distributions under the plan). Failure to satisfy these requirements can result in significant adverse consequences, including (but not limited to) inclusion in the employee’s taxable income of all vested compensation deferred under the plan, plus interest and a 20% penalty tax.
This material does not reflect the impact of state and local income taxes. The state and local income tax treatment of a qualified retirement plan and/or a nonqualified deferred compensation plan may differ from the federal tax treatment. You should consult with and rely on your own independent tax advisor.
Tax laws are complex and subject to change. Morgan Stanley and its affiliates, employees and agents do not provide tax or legal advice. Employers (and other service recipients) should consult their own tax and legal advisors before establishing a nonqualified deferred compensation plan, and regarding any potential legal, tax and other consequences of any investments or other transactions made with respect to a nonqualified deferred compensation plan. Eligible employees (and other eligible service providers) should consult their own tax and legal advisors before deciding to participate in, or making any elections with respect to, a nonqualified deferred compensation plan. Nonqualified deferred compensation plan recordkeeping services are part of Morgan Stanley at Work solutions and are offered by E*TRADE Financial Corporate Services, Inc.
E*TRADE Financial Corporate Services, Inc. is a wholly owned subsidiary of Morgan Stanley.
Insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC’s licensed insurance agency affiliates.
CRC#5500254 (06/2026)