A Beginner's Guide to Deferred Compensation

You've climbed the corporate ladder, you're making good money and suddenly someone from human resources presents you with a newfangled employee benefit -- the opportunity to participate in a deferred compensation plan.

Deferred compensation plans can be a great savings vehicle, especially for employees who are maximizing their 401(k) contributions and have additional savings for investment, but they also come with lots of strings attached. In general, deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement) when taxable income