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Deferred compensation plan

Term · Insurance and risk management · MLC-T-INS-001105

An arrangement where an employer agrees to pay a portion of an employee's earnings at a future date, such as after retirement or termination of employment. These plans allow employees to postpone receiving income, and consequently the tax liability on that income, until a time when their tax rate is lower. Nonqualified deferred compensation plans are governed by Section 409A of the Internal Revenue Code, which sets rules for deferral elections and payment timing.

Table 1. Record
IdentifierMLC-T-INS-001105
FieldInsurance and risk management
Record as JSON 
{
  "id": "MLC-T-INS-001105",
  "term": "Deferred compensation plan",
  "field": "Insurance and risk management",
  "definition": "An arrangement where an employer agrees to pay a portion of an employee's earnings at a future date, such as after retirement or termination of employment. These plans allow employees to postpone receiving income, and consequently the tax liability on that income, until a time when their tax rate is lower. Nonqualified deferred compensation plans are governed by Section 409A of the Internal Revenue Code, which sets rules for deferral elections and payment timing.",
  "url": "https://mlchart.com/terminology/insurance/deferred-compensation-plan/"
}

Record 913 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.