deferred compensation plan

Popular Terms
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.

Use 'deferred compensation plan' in a Sentence

I hoped that our deferred compensation plan would work, otherwise I think that we would be out of luck and have to do something else.
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You may need to work out a DEFERRED COMPENSATION PLAN if you want to bring someone on but can't afford to fully pay them at the time.
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Jeannine was confused by the deferred compensation plan offered by the company until her coworkers explained that it could help her qualify for a lower income tax bracket.
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