# Deferred Compensation

*Retirement & Benefits — Finicade finance glossary*

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.

**Also known as:** NQDC, non-qualified deferred compensation, deferred pay

**Related terms:** [457 Plan](https://finicade.com/glossary/457-plan), [Vesting](https://finicade.com/glossary/vesting), [Counterparty Risk](https://finicade.com/glossary/counterparty-risk), [Marginal Tax Rate](https://finicade.com/glossary/marginal-tax-rate), [Severance Pay](https://finicade.com/glossary/severance-pay)

Source: https://finicade.com/glossary/deferred-compensation