Kiplinger

A Beginner's Guide to Deferred Compensation

You've climbed the corporate ladder, you're making good money and suddenly someone from human resources presents you with a newfangled employee benefit -- the opportunity to participate in a deferred compensation plan.

Deferred compensation plans can be a great savings vehicle, especially for employees who are maximizing their 401(k) contributions and have additional savings for investment, but they also come with lots of strings attached. 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

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger4 min read
Are Tech Stocks Nearing Another Bubble Burst?
Forgive me if today's stock market makes me feel a bit like Rip Van Winkle. Maybe, like Rip, I've been asleep since early 2000, which marked the peak of one of the biggest bull markets ever. Consider today's initial public offering (IPO) market. It's
Kiplinger5 min read
5 Causes of Marital Money Stress (and How to Fix Them)
Are you and your spouse burdened by financial stress? You're not alone. According to Marriage.com, money fights are the second-leading cause of divorce, behind infidelity. Below are the main culprits of money tension in couples and strategies to
Kiplinger5 min read
What to Know Before Purchasing an Annuity Income Rider
For over a decade, annuities with income riders have become a preferred choice for many retirees without pensions or in need of supplementing their Social Security. Who doesn't want a "guaranteed return" of 5% to 7% and as high as 10% for the next 10