Is Deferred Compensation A Retirement Plan?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaA deferred compensation plan is an arrangement created between the employer and the employee to delay portions of their salary and/or bonus until a future date, generally retirement. The employer can deduct the deferred salary when it's distributed at the arranged date. The employee then takes the deferred compensation as ordinary income and pays taxes at their effective tax bracket rate. So in effect, it is a type of retirement plan.Answered on July 9, 2013+01+1 this answer
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