Not Yet Registered?
You can have access to our in-depth exclusive content on NQDC in just a few clicks.
A delay in receiving income that also delays the taxation of that income. When you have deferred compensation, you choose which income to defer (e.g. salary, a bonus, or shares from restricted stock units) and how long you want to defer your receipt of the income and therefore the taxation of that income. Deferral arrangements, whether qualified or nonqualified, must follow the tax laws and regulations to avoid immediate taxation and penalties.