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August 2nd, 2010

What are Top Hat Plans?

(Money Manager) - The term "top hat plan" refers to special non-qualified retirement plans that are sometimes set up by companies for selected groups of individuals, who are usually key executives within the company. These plans are reserved for just this select group of individuals, who are generally in management or have highly compensated positions within the company. These plans are not considered by the Internal Revenue Service (IRS) to have tax-qualified status.

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