RETHINK THAT DEFERRED COMP PLAN NOW

摘要

Before 2005 executives who opted to delay pocketing some or all of their pay by stashing pretax income in an employer-sponsored investment account could have their cake and eat it too. By putting money in a nonqualified deferred compensation plan, they could secure tax-advantaged investment growth without having to worry much about the perk's major downside-restricted access to the money. To raid these accounts at times different from those elected at the outset, an executive merely had to pay a 10% penalty. "There was a lot of flexibility," says Robert Barbetti, executive compensation specialist at JPMorgan Private Bank.