Deferred Compensation Plan Accounts
Plan Basics

One key difference between a 401(k) plan account and a deferred compensation plan account is that money held in a deferred compensation plan account is the property of the employer, not the participant. The account is registered to the employer’s Tax Identification Number, not the participant’s Social Security Number.

Your cooperative must have adopted a deferred compensation plan in order for you to fund a deferred compensation account on behalf of a participant. Participation in your system’s deferred compensation plan may be limited to select groups of employees or only to cooperative directors. This depends on the type of plan your system has elected.