Calculating Risk and Investing Wisely

What is a Deferred Compensation Plan? How is it Different from a 401(k)?

Deferred compensation plans permit employees to defer receiving compensation until a later date. The deferred portion can be invested on a pre-tax basis and compound tax-free until the proceeds are withdrawn.

1 https://www.bls.gov/opub/ted/2021/67-percent-of-private-industry-workers-had-access-to-retirement-plans-in-2020.htm

2 https://www.truist.com/resources/wealth/articles/deferred-compensation-the-pros-and-cons

3 https://www.patriotsoftware.com/blog/payroll/difference-qualified-vs-nonqualified-plans/#:~:text=Qualified%20deferred%20compensation%20plans%20have,compensation%20as%20they%20would%20like.

4 https://corporatefinanceinstitute.com/resources/accounting/deferred-compensation/

5 https://corporatefinanceinstitute.com/resources/accounting/deferred-compensation/

6 https://corporatefinanceinstitute.com/resources/accounting/deferred-compensation/

7 https://www.fidelity.com/learning-center/personal-finance/retirement/the-benefit-of-nqdc-plan

8 https://money.usnews.com/money/retirement/401ks/articles/what-is-a-deferred-compensation-plan

9 https://bklawyers.com/employment-law-resources/tax-qualified-and-nonqualified-deferred-compensation-plans/

10 https://smartasset.com/retirement/5-disadvantages-of-saving-with-a-401k-plan

11 https://www.truist.com/resources/wealth/articles/deferred-compensation-the-pros-and-cons

12 https://www.fidelity.com/viewpoints/retirement/nqdc

13 https://www.fidelity.com/learning-center/personal-finance/retirement/the-benefit-of-nqdc-plan

14 https://www.truist.com/resources/wealth/articles/deferred-compensation-the-pros-and-cons

15 https://www.fidelity.com/viewpoints/retirement/nqdc

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