Deferred Compensation - Worth it or not?

[Storm]

I'd like some advice from fellow PP investors about whether they feel this is worth it or not.

Assuming you have an extra 10% of your income you can save, besides what you put into the PP already.  Your work offers you the following plan:

Deferred Compensation:

• Contributions are not taxed until withdrawal, since this is really salary that you haven't been paid yet.
• Employer match of 4% of the amount of contribution (deposit $100, employer adds $4)
• Interest is paid on the account based on the rate of current 10 year treasuries (about 3.5% currently)
• You can't withdraw from or borrow the money until you leave your job, quit or retire.
• Default risk in case the company goes out of business - the company has been around for 175 years and is very stable (Fortune 15)

So, the question really:  Is it worth it?  I like the immediate 4% employer match, and the interest is not bad for a long term investment vehicle.  Also, the tax benefits of getting less income are always nice.

But the real question - is it better than investing the money in the PP?

[MediumTex]

I would say the employer match makes it a good idea.

Make sure you understand the risks and the distribution restrictions, though.

Nonqualified deferred comp arrangements are a very complicated part of an already complicated area.

[Storm]

Nonqualified deferred comp arrangements are a very complicated part of an already complicated area.

You can say that again.  Reading the plan documents makes my brain hurt.  From what I can tell, this is a way for executives that make way more than I do to defer their income for a while, mainly for tax purposes.  They say you can contribute "up to 90% of your salary," and the only people I can think of that can afford to defer that much are way above my pay grade.