Is A Deferred Compensation Plan A Retirement Plan? 
Deferred compensation plans are generally an additional executive retirement plan when a qualified plan contributions have reached their maximum . Although the employer ca n't deduct the plan until the employee 's retirement date , the plan generally has a vesting schedule that can be a golden handcuff to the key executive to stay on until it 's fully vested . The plans accumulate tax deferred and are taxable as ordinary income during distributions . 