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Personal Finance

What is a deferred compensation plan?

Quick Answer

A deferred compensation plan (NQDC) lets eligible executives postpone receipt of salary or bonus to a future year, deferring income tax. Unlike 401(k)s, the money remains an unsecured claim against the employer.

Comparison of 401(k) and non-qualified deferred compensation features.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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