Deferred Comp

•  Allows each participant the option to defer present compensation, thus reducing current taxable income

•  Employee's compensation retained by the employer is invested to pay a greater income to the key person at retirement

•  Employee can choose same investment options in 401(k) Mirror Plans or other options can be selected

•  Typically the corporation pays the benefits at retirement in a lump sum or for up to a certain number of years--perhaps 15 or 20 years

•  Most plans have a pre-retirement death benefit and provide for benefits in the event of disability

•  Upon termination of employment employee gets vested account balance