Deferred compensation is an enhancement to retirement benefits allowing you to save money for your retirement today and defer income taxes on those savings until you make withdrawals from your account.
A deferred compensation plan is another name for a 457(b) retirement plan or “457 plan” for short.
If you participate in a deferred compensation plan, you can contribute a portion of your salary to a retirement account. That money and any earnings you accumulate are not taxed until you withdraw them.
