top of page

Business Preservation Planning |Deferred Compensation Agreement

Deferred Compensation Arrangement

Business Preservation Planning |Deferred Compensation Agreement

Deferred compensation is an addition to an employee's regular compensation that is set aside to be paid at a later date. In most cases, taxes on this income are deferred until it is paid out. There are many forms of deferred compensation, including retirement plans, pension plans, and stock-option plans¹.

Deferred compensation can be offered as a way for employers to retain key employees or as a way for employees to save for retirement. 

The employee can choose how much of their salary they want to defer and how they want the money invested¹.

A deferred compensation plan allows you to put more money away for retirement². In general, deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement) when taxable income is likely to be lower³.

Deferred compensation refers to that part of one’s contribution that is withheld and paid at a future date. Retirement plans and employee pensions are examples of deferred compensation¹. 

(1) What Is Deferred Compensation? - Investopedia. (2) DCP - Deferred Compensation Program - Plan Guide.

(3) Plan Highlights - Pennsylvania State Employees' Retirement System. (4) New York State Deferred Compensation. (5) dcphome -

Guide Download 

Business Preservation Planning |Deferred Compensation Agreement

Thanks for submitting!

bottom of page