Tax Advantages
Tax advantages
Deferring part of your income with the DCP Plan offers clear advantages for saving on current taxes.
| Without DCP | With DCP | |
|---|---|---|
| Eligible pay | $150,000 | $150,000 |
| Deferral amount | $0 | $25,000 |
| Tax bill* | $52,500 | $43,750 |
| Tax savings | $0 | $8,750 |
| * Assumes you’re an unmarried individual paying 35% in federal income taxes on your annual compensation. | ||
