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Retirement Planning
Chapter 12: Deferred Compensation & Equity Compensation/WHY OFFER DEFERRED COMPENSATION
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Chapter Study Session

Chapter 12: Deferred Compensation & Equity Compensation

WHY OFFER DEFERRED COMPENSATION

01.Core Concepts

• To provide benefits to a select group of employees without the limitations of qualified plans • To discriminate the provision of benefits to key employees • Qualified plans cannot provide sufficient retirement resources for key executives who earn in excess of t he covered compensation limit of $350,000 for 2025.