Non-Qualified Deferred Compensation Plan

Anybody have one of these? Have any tips on the best way(s) to allocate to it?

Is this just where they take your comp (probably your bonus) and spread it over X number of years? If so, yes, I have this, unfortunately. I put it in SPX…

It’s where you have the option to defer compensation and take it at a later date when your taxes are potentially lower. You can defer for 5 or 10 years or all the way until retirement or separation from the company and you can pick a distribution schedule. So, say you made 500k last year but you think you’ll retire in 10 years. You could put 200k (limits are determined by the plan, not law) in teh DCP and take distributions from it in 10 years at a lower marginal tax bracket than where you are now.

It is similar to a 401k, but without the ERISA protections. It seems great, but there is concern about getting burned if your company, you know, goes into bankruptcy.

Oh yeah. I also have that option but elected not to defer any compensation. My company’s compensation scheme is getting too complicated. I have deferred bonus already, plus mandatory vested interest in my company stock - as if I can actually do anything to change that.

Oh yeah. I also have that option but elected not to defer any compensation. My company’s compensation scheme is getting too complicated. I have deferred bonus already, plus mandatory vested interest in my company stock - as if I can actually do anything to change that.