Deferred Compensation Plan
A Clear Choice in Executive Benefit Plan Options.
Provide your contact information you would like to learn more about!
Understanding the Benefits of a DCP.
Deferred compensation grows tax-deferred, and the plan is not subject to discrimination testing like qualified retired plans. From the company’s perspective, these compensation deferrals are viewed as a future promise to pay and are typically structured with an offsetting asset to ensure minimal or no P&L impact on the company sponsor. These assets are often held in trust.
The below hypothetical comparison graphic demonstrates the power of pretax compounding of deferrals invested on a tax-deferred basis:
DCP vs. 401(k)
