Business Solutions

Business Needs Assessment (digital approach tool) Business Owner Retirement Business Valuation/Buy-Sell Review Family Business Planning Industry Marketing - Agriculture Industry Marketing – Healthcare Prioritizing Business Needs Strategic Alliances

Business Protection

ESOP Repurchase Key Person

Business Succession

Buy-Sell Strategies Transfer Strategies

Income Protection

Key Employee Retention & Retirement

Bonus Bonus - LLC Member Bonus - S Owner Bonus (Tax Exempt) Death Benefit Only Death Benefit Only (Tax Exempt) Deferred Comp - 457(b) and 457(f) Deferred Comp - Defined Benefit Deferred Comp - Defined Contribution Deferred Comp - Incentive Bonus Deferred Comp - Select Reward Deferred Comp - Select Reward (Tax Exempt) Deferred Comp - SERP Endorsement Split Dollar Loan Split Dollar

Legacy & Estate Planning

Charitable Giving Gifting Strategies Inheritance Equalization Private Split Dollar Special Needs Trust Solutions Estate Tax Reports

Deferred Comp - 457(b) and 457(f)

The Principal^® Deferred Comp - 457(b) plan and the Principal^® Deferred Comp 457(f) plan are offered exclusively for non-governmental tax-exempt organizations. These organizations may offer nonqualified deferred compensation plans for a select group of highly compensated or key management employees. These retirement plan benefits are available to these employees outside the restrictive eligibility, vesting and contribution limitations of ERISA.

The 457(b) and 457(f) plans can work independently or in conjunction with each other.

457(b) allows both participant and plan sponsor contributions in excess of retirement plan limitations up to annual limits.
457(f) allows the only the organization to make discretionary contributions in addition to the 457(b) limitations. Participant contributions are not allowed in this plan.

View Employer Summary (BB9486) to review the benefits and considerations of these plans for plan sponsors and participants.

Target Market

Target organizations that display most of the following attributes:

Business entity (non-governmental tax-exempt organizations)
Good financial situation (profitable, good cash flow)
Highly compensated employees with retirement income gap and/or income deferral needs
Willingness to provide a solution for key employees

Key Features

For Plan Participants

Participants have the opportunity to defer compensation in excess of retirement plan limits on a pre-tax basis (457(b) only).
The 457(f) plan allows plan sponsor contributions in addition to the 457(b) limits.
Ability to design an individualized investment strategy.

For Plan Sponsors

Flexible plan designs to help meet organizational needs
Assets accumulated to finance the plan remain an asset on the organization’s balance sheet.
Flexible plan design and multiple financial options available.
Plan is simple and easy to administer, requires no discrimination testing, minimum participation or Form 5500 filing, if set up properly.

Funding and Financing

Deferred compensation plans are unfunded contractual obligations to pay benefits to a plan participant in the future. The employer can choose to informally finance the future obligation or leave the obligation unfinanced. The best financing method is dependent on the employer’s financial characteristics and the degree of risk that is acceptable to plan participants and the employer.

Financing and Investment Capabilities Brochure (BB9784)
Demonstrates the ability of Principal to help clients simplify the financing and investment aspects of their deferred compensation plans.
View (PDF) • Order

For more information: Corporate Owned Life Insurance (COLI) • Taxable Investments

Consumer Materials

Before the Sale

Deferred Compensation Capabilities Brochure (BB9406)
Present the comprehensive plan-level experience and administrative plan services that Principal^® provides for its deferred compensation plan employer clients.
View (PDF) • Order

Nonqualified Deferred Compensation Leadership Flyer (BB9750)
Demonstrate the deferred comp capabilities of Principal with leadership and financial strength statistics.
View (PDF) • Order

Combo 457(b) & (f) Employer Summary (BB9486)
A one-page plan overview that explains both the Deferred Comp - 457(b) and 457(f) plans.
View (PDF) • Order

457(b) Business Opener (Customizable) (BB10468C)
Introduce the Deferred Comp - 457(b) plan to tax-exempt organizations. To create a customized electronic file, select “View” below.
View (PDF) • Order

Combo 457(b) & (f) Business Opener (Customizable) (BB9471) & Opener Presentation (BB11425)
This marketing piece and presentation is designed to introduce both the Deferred Comp - 457(b) and 457(f) plans. To create a customized electronic file, select “Order” below.
View (PDF) • Order • View Presentation (PPT)

During the Sale

Sample Proposal
Retirement and Investor Services (RIS) Distribution is responsible for all 457 plan sales and pricing. Customized proposals are available upon request. Please contact the RIS Support Team at 800-952-3343, option 2 for more information.

Engagement Agreement (BB10291)
Once the client is ready to use our in-depth plan design consulting, complete this agreement and return with engagement fee.
View (DOC)

After the Sale

NQDC Summary of Services (NQ23)
Outlines core and optional administrative services available.
View (PDF)

457(b) Sample Participant Statement (NQ9)
Sample report for the participant.
View (PDF)

NQDC Implementation & Enrollment
Access materials for use in the plan implementation process, including business submission guidelines, participant materials and sample agreements.
Go to NQDC New Business Enrollment

3418231-032024