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08 Nov
The Pros And Cons Of Deferred Compensation

By Colleen Weber, CFP®, CPA

If you’re a high-income-earner, you have some challenges when it comes to tax-advantaged investing strategies. But just because government restrictions make it harder to invest in traditional accounts, such as Roth IRAs with their income phaseout rules and 401(ks) with their contribution limits, that doesn’t mean you’re out of luck. Your company’s deferred compensation plan may be your ticket to minimizing your taxes. But before signing on the dotted line, you need to understand how these plans work and the pros and cons of participating in one.

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