Difference between revisions of "Deferred compensation"

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(Removed the lines below the definition, as they applied to non-qualified plans.)
(More info with link back to retirement plan overview.)
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;An arrangement in which a portion of an employee's income is paid out at a date later than income is actually earned. Examples include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation plans is the ''deferral of tax''.
 
;An arrangement in which a portion of an employee's income is paid out at a date later than income is actually earned. Examples include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation plans is the ''deferral of tax''.
  
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When used in context as an employer's ''Deferred Compensation Plan'', it refers to a contract between employer and employee. Please see [[Employer Retirement Plans Overview#Deferred Compensation Plan | Deferred Compensation Plan]].
  
 
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Revision as of 17:50, 16 September 2009

deferred compensation

An arrangement in which a portion of an employee's income is paid out at a date later than income is actually earned. Examples include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation plans is the deferral of tax.

When used in context as an employer's Deferred Compensation Plan, it refers to a contract between employer and employee. Please see Deferred Compensation Plan.

Links

Deferred compensation--what is it?, Bogleheads forum discussion
Deferred Compensation, Bogleheads forum discussion

Definitions of deferred compensation on Google