deferred compensation plan
Definition
Employee pension plan in which a portion of employee's salary is not paid until retirement. Upon retirement, the employee (or the surviving spouse of a deceased employee) receives a periodic or lump sum payment based on the employee's contribution The objective is to qualify an employee for lower income tax rate, before his or her income actually falls in a low-tax bracket. Life insurance policies are used also for the same objective where the cash value of the policy yields similar savings. Also called deferred compensation pension plan.
deferred compensation plan is in the Accounting & Auditing and HR, Teams, & Training subjects.
deferred compensation plan appears in the definitions of the following terms: deferred compensation pension plan, pension plan and deferred profit-sharing plan
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