Home  | Term of the Day | |||
| deferred compensation An arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned. Examples of deferred compensation include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation is the deferral of tax. | ||||
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| Usage Example I opted for deferred compensation when I decided to put some of each of my paychecks into a Roth IRA every month. | ||||
Term of the Day
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