Deferred Compensation
Also called: NQDC, non-qualified deferred compensation, deferred pay
Deferred compensation is pay you elect to receive in a later year, deferring the tax with it. Non-qualified plans have no contribution limit, which is their appeal for high earners, and no protection — the balance is an unsecured claim on your employer, so a bankruptcy can wipe it out entirely. Election choices are also largely irrevocable, so the payout schedule must be set years before you know your circumstances.