457(f) – This type of plan is essentially a bonus based on time. The organization can hand select which employees they choose to include in this type of plan. Unlike qualified plans like 403(b)/401(k) where both employer and employee can contribute with limits or a 457(b) which also has limits similar to the 401(k), with a 457(f), there are no limits set by the IRS, but there is a reasonableness standard that should be considered (NCUA).

Split Dollar – A split dollar plan is based on a secured loan from the credit union to the executive to purchase a life insurance policy. The Credit Union has a first lien on the life insurance policy similar to a mortgage on a house. Properly designed these plans provide non-taxable distributions to the executive during retirement, or at other intervals, with the credit union/non-profit recovering all funds invested into the plan, plus interest.

Either type of plan is completely customizable; there is no one size fits all approach.