Plan that lets compensation be paid at a later date rather than immediately, often to shape taxes and retirement cash flow.
A deferred compensation plan lets compensation be paid at a later date rather than immediately, often to shape taxes and retirement cash flow.
It matters because executives and highly compensated workers may use deferred plans to shift income timing in ways that standard payroll does not allow.
One of the main U.S. compliance frameworks behind these arrangements is 409A Plans, which govern when deferrals and distributions are allowed.
Deferred Compensation
409A Plans
Supplemental Executive Retirement Plan (SERP)")
401(k) Plan Plan")