Understanding What You've Been Offered
Deferred compensation plans vary widely in structure, distribution timing, and risk. Understanding the specific terms of your plan is the first step to using it well.

Weighing the Tax Tradeoffs
Deferring income can reduce your tax burden in high-earning years, but the benefit depends on your expected tax bracket at the time of distribution, which isn't always easy to predict.

Considering the Risk
Unlike a 401(k), deferred compensation is often unsecured, meaning it carries some dependency on the company's financial health. That risk deserves consideration alongside the tax benefits.