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Deferred compensation is a benefit available to many corporate executives. In this tutorial, Michelle Smallenberger from Financial Design Studio discusses the key aspects of deferred compensation. She explains that it involves earning income now and opting to receive it in the future. Key points include when to use this benefit, tax timing considerations, and important decisions involved. The primary motivations for deferring compensation are tax savings, as it allows individuals to delay income recognition to a time when they may be in a lower tax bracket, such as from 37% to 24%. Finally, the tutorial also covers the pros and cons of deferred compensation and its implications for financial planning.