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 The deferred portion can be invested on a pre-tax basis and compound tax-free until the proceeds are withdrawn.
2 https://www.truist.com/resources/wealth/articles/deferred-compensation-the-pros-and-cons
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
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
Additional Reading
A mega backdoor Roth is a retirement strategy that lets high earners contribute after-tax dollars to a 401(k) beyond the standard $24,500 employee deferral limit, then convert those dollars to a Roth account. In 2026, total 401(k) contributions can reach $72,000, or $83,250 for eligible participants ages 60 through 63.
Volatility and risk are often confused, but they're not the same thing. Understanding the difference can change how you think about your portfolio.
Factor investing targets specific drivers of returns like value and momentum. Explore whether this evidence-based approach belongs in your portfolio.
