The Trump administration’s recent tax-cut proposal, along with activity in Congress, has complicated the decision of whether to participate in your company’s NQDC plan. This article provides a perspective on how to decide whether or not to defer pretax compensation.

Nonqualified deferred compensation offers you a way to accumulate wealth above the amount you can defer in a 401(k). Depending on your income, there may be a substantial gap between what you can put away with a 401(k) or 403(b) plan, what you will get with Social Security, and what you will need in retirement…