Deferred Compensation Tax Estimator

Estimates federal income tax on Non-Qualified Deferred Compensation (NQDC) payouts. Uses 2025 FICA rates & limits. For informational purposes only.

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FICA Tax Information (for Non-Qualified Deferred Comp.)

FICA is typically due when services are performed or there's no substantial risk of forfeiture.

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Enter 0 if the deferred amount does not earn notional interest/growth.

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Estimated Tax Impact Comparison

Estimated FICA Tax Due Now (Employee Share on Deferred Amount): ${formatCurrency(estimatedFicaDueNow)}

  • Social Security: ${formatCurrency(ssTax)} (on up to ${formatCurrency(ficaData2025.ssWageBase)} combined earnings)
  • Medicare (1.45%): ${formatCurrency(medicareTax)}
  • Additional Medicare (0.9%): ${formatCurrency(addMedicareTax)} (on earnings over ${formatCurrency(addMedicareThreshold)} for status: ${ficaFilingStatus})

This FICA estimate depends on your 'Other FICA Earnings' input. Actual FICA may vary. Employer also pays their share.

`; } // Display Results resultsOutputEl.innerHTML = `
MetricScenario 1: Take Compensation NowScenario 2: Payout After Deferral
Gross Compensation Amount${formatCurrency(amountDeferred)}${formatCurrency(futureValue)}
Years DeferredN/A${yearsDeferred}
Assumed Annual GrowthN/A${(growthRate*100).toFixed(2)}%
Estimated Income Taxes
Federal Marginal Rate Applied${(currentFedRate*100).toFixed(2)}%${(futureFedRate*100).toFixed(2)}%
Est. Federal Income Tax${formatCurrency(taxNowFed)}${formatCurrency(taxLaterFed)}
State Marginal Rate Applied${(currentStateRate*100).toFixed(2)}%${(futureStateRate*100).toFixed(2)}%
Est. State Income Tax${formatCurrency(taxNowState)}${formatCurrency(taxLaterState)}
Total Estimated Income Tax${formatCurrency(totalTaxNow)}${formatCurrency(totalTaxLater)}
Net Result
Est. Net Amount Received${formatCurrency(netNow)}${formatCurrency(netLater)}
${ficaResultsHTML}

Important Notes & Assumptions:

  • This estimator is for Non-Qualified Deferred Compensation (NQDC) and assumes the plan complies with IRC Section 409A. Non-compliance can result in immediate taxation, penalties, and interest.
  • Income tax estimates are based on the marginal rates you provide. Actual tax liability depends on your overall taxable income, deductions, credits, and applicable tax brackets in the year of receipt.
  • Future tax rates and laws are subject to change, which can significantly impact the outcome of deferral.
  • State taxes are estimated based on the state marginal rate provided and may not include all state-specific nuances. Some states do not have an income tax.
  • This tool does not provide financial or tax advice. Consult with qualified professionals before making any financial decisions.
`; tabSummaryButton.disabled = false; switchTab('dctcTabSummary'); // Store for PDF window.dctcReportData = { amountDeferred, currentFedRate, currentStateRate, yearsDeferred, growthRate, futureFedRate, futureStateRate, taxNowFed, taxNowState, totalTaxNow, netNow, futureValue, taxLaterFed, taxLaterState, totalTaxLater, netLater, ficaDueNow: ficaDueNowSelect.value, estimatedFicaDueNow: (ficaDueNowSelect.value === 'yes' ? estimatedFicaDueNow : 0), ficaDetailsHTML: (ficaDueNowSelect.value === 'yes' ? ficaResultsHTML : ficaResultsHTML.split("

")[0] + "

") // Only first para if no calc }; }); // Helper: Format Currency function formatCurrency(amount) { if (isNaN(amount)) amount = 0; return `\$${amount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2})}`; } // --- Reset All --- if(btnResetAll) btnResetAll.addEventListener('click', function() { const inputs = [amountDeferredEl, currentFedRateEl, currentStateRateEl, currentFicaEarningsEl, yearsDeferredEl, growthRateEl, futureFedRateEl, futureStateRateEl]; inputs.forEach(input => { if(input) input.value = ''; }); if(ficaDueNowSelect) ficaDueNowSelect.selectedIndex = 0; currentFicaEarningsGroup.style.display = 'none'; filingStatusFicaGroup.style.display = 'none'; document.querySelectorAll('.dctc-error-message').forEach(el => el.textContent = ''); resultsOutputEl.innerHTML = '

Enter your information and click "Calculate" to see estimates.

'; tabFutureButton.disabled = true; tabSummaryButton.disabled = true; switchTab('dctcTabCurrent'); window.dctcReportData = null; }); // --- PDF Download --- if(btnDownloadPdf) btnDownloadPdf.addEventListener('click', function() { if (!window.dctcReportData) { alert("Please perform an analysis first to generate a report."); return; } const data = window.dctcReportData; const printStyles = ` body { font-family: Arial, sans-serif; margin: 20px; font-size: 10pt; } h2 { color: #8A2BE2; text-align: center; border-bottom: 1px solid #ccc; padding-bottom: 5px; margin-bottom: 15px; font-size: 14pt;} h3 { color: #343A40; margin-top: 15px; margin-bottom: 10px; font-size: 12pt;} h4 { font-size: 10pt; margin-top:10px; margin-bottom:5px; color: #4682B4;} table { width: 100%; border-collapse: collapse; margin-bottom: 1rem; } th, td { padding: .5rem; vertical-align: top; border: 1px solid #B0C4DE; text-align:left; } th { font-weight: 700; background-color: #F8F9FA; } td.dctc-amount { text-align: right; font-weight: bold; } .dctc-highlight { color: #8A2BE2; font-size: 1.05em; } .dctc-notes-section-pdf { margin-top: 15px; padding: 10px; background-color: #F8F9FA; border-radius: 5px; font-size: 0.85em; line-height: 1.5; border: 1px solid #B0C4DE;} .dctc-notes-section-pdf ul { padding-left: 18px; margin-top: 8px; } .dctc-notes-section-pdf li { margin-bottom: 6px; } .dctc-info-text-pdf {font-size:0.8em; color:#555; margin-top:3px; margin-bottom:8px;} .footer-note {font-size:0.8em; margin-top:20px; text-align:center; color: #777;} `; const reportBodyHTML = `

Deferred Compensation Tax Estimate Report

MetricTake Compensation NowPayout After Deferral
Gross Compensation Amount${formatCurrency(data.amountDeferred)}${formatCurrency(data.futureValue)}
Years DeferredN/A${data.yearsDeferred}
Assumed Annual GrowthN/A${(data.growthRate*100).toFixed(2)}%
Estimated Income Taxes
Federal Marginal Rate Applied${(data.currentFedRate*100).toFixed(2)}%${(data.futureFedRate*100).toFixed(2)}%
Est. Federal Income Tax${formatCurrency(data.taxNowFed)}${formatCurrency(data.taxLaterFed)}
State Marginal Rate Applied${(data.currentStateRate*100).toFixed(2)}%${(data.futureStateRate*100).toFixed(2)}%
Est. State Income Tax${formatCurrency(data.taxNowState)}${formatCurrency(data.taxLaterState)}
Total Estimated Income Tax${formatCurrency(data.totalTaxNow)}${formatCurrency(data.totalTaxLater)}
Net Result
Est. Net Amount Received${formatCurrency(data.netNow)}${formatCurrency(data.netLater)}
${data.ficaDetailsHTML.replace(/

/g, '

FICA Tax (Social Security & Medicare) on NQDC:

').replace(/

/g,'

')}

Important Notes & Assumptions:

  • This estimator is for Non-Qualified Deferred Compensation (NQDC) and assumes the plan complies with IRC Section 409A.
  • Income tax estimates are based on user-provided marginal rates. Actual tax liability depends on overall financial situation.
  • Future tax rates and laws are subject to change.
  • This tool does not provide financial or tax advice. Consult with qualified professionals.

Report generated by Deferred Compensation Tax Estimator. FICA data for 2025 used for illustration.

`; const printWindow = window.open('', '_blank'); if (printWindow) { printWindow.document.open(); printWindow.document.write(`Deferred Compensation Estimate${reportBodyHTML}`); printWindow.document.close(); setTimeout(() => { printWindow.focus(); printWindow.print(); /* printWindow.close(); */ }, 500); } else { alert('Could not open print window. Please check pop-up blocker settings.'); } }); // Initial setup btnResetAll.click(); });
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