If “deferred compensation” is technically any agreement in which an employee receives wages after earning it, the more frequent use of the term refers to “unskilled” deferred compensation and a certain part of the tax code that offers a particular benefit to senior executives and other highly compensated employees of the company. Deferred compensation is an agreement by which a portion of a worker`s income is paid at a later date in which the income has been reached. Examples of deferred compensation include pensions, retirement plans and employees` options for action. The main benefit of the most deferred remuneration is the deferral of tax to the date (s) to which the employee receives the income. Deferred compensation is a written agreement between an employer and a worker, in which the worker voluntarily agrees to withhold part of his earnings from the company, to invest on his behalf and to give it at some point in the future. The fact that in the United States, the Internal Revenue Code Section 409A regulates the treatment of “unqualified deferred allowances,” the date of deferral elections and distributions for federal income tax purposes, is not different from qualification.  “If agents remain with an employer for a long period of time, there is no necessary reason for the employer to pay the worker its expected marginal product at all times; Instead, workers may be better paid for certain periods than in others. One of the aspects that generated both theoretical and empirical interest was “deferred pay,” in which older workers are overpaid to bear the price of underpayment at a young age. From this point of view, part of the reason that older workers are better paid than younger workers is not that they are more productive, but simply because they have re-referenced enough mandates to obtain these contractual returns.  Deferred compensation is sometimes considered a deferred competition, a qualified deferred compensation, DC, deferred unqualified comp, NQDC or gold handcuffs. In a qualified ERISA plan (such as Plan 401 (k), the company`s contribution to the plan is tax deductible as soon as it is made, but not taxable for each participant until it is withdrawn.