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Business Preservation Planning

Deferred Compensation Arrangement

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Deferred compensation is an addition to an employee's regular compensation that is set aside to be paid at a later date. In most cases, taxes on this income are deferred until it is paid out. There are many forms of deferred compensation, including retirement plans, pension plans, and stock-option plans¹.

Deferred compensation can be offered as a way for employers to retain key employees or as a way for employees to save for retirement. The employee can choose how much of their salary they want to defer and how they want the money invested¹.

(1) What Is Deferred Compensation? - Investopedia.

(2) DCP - Deferred Compensation Program - Plan Guide.

(3) Plan Highlights - Pennsylvania State Employees' Retirement System.

(4) New York State Deferred Compensation.

(5) dcphome -

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