Nvidia Deferred Comp
Does anyone know if Nvidia has a deferred comp program? Meaning that you can set aside money, like a 401k, that the company will invest and agree to pay to you at a later date.... Point of which would be to take the money out in a lower tax bracket. e.g. you make $500k, you take $200k out now and put $300k in an account which is money Nvidia agrees to pay at a later date when you are retired or whatever. Oracle has one. TC - $270k
This is usually offered at higher levels in companies, my company offers it at principal engineer and higher, think L6 equivalent or L7.
What is the benefit? Using OP's calculations, he takes 200k and keeps 300k in deferred account. So in 2 years he earned 200k each year and has balance of 600k in deferred account. Then he jumps company at which time he will be paid 600k. Assuming new company pays 500k (no deferred) his income reported for that year would then be 1.1M and tax would need to be paid on that 1.1M
from the post: >when you are retired or whatever it's the same concept as a 401k in that regard
Found good info at https://www.voya.com/voya-insights/beginners-guide-deferred-compensation Technically, if company goes bankrupt, that money is totally gone. That's a big risk. There are other details like at the time you choose to defer your income, you also have to be specific on when and how you want to receive the money back. Changes to those distribution plans are difficult and often require you to delay receipt of your deferred income for up to five years once change is made.
IDK if anyone offers this. Why would they?