A DCP is a nonqualified benefit plan that enables executives to defer compensation on a pre-tax basis in excess of qualified plan limits. This plan has many of the features and benefits of a qualified 401(k) plan, but without the corresponding reporting, funding and non-discrimination testing requirements. The corporation may also contribute an additional amount and/or match the executive’s contributions. Earnings on the executive and corporate contributions grow on a tax-deferred basis, and the accumulated contributions and earnings are paid out at a specified date in the future.