khunkornStudio / Shutterstock.com · khunkornStudio / Shutterstock.com Quick Read Executives can redirect bonus income through two tax mechanisms: raising 401(k) deferral rates before bonus payment (allowing up to $24,500-$35,750 in total 2026 deferrals depending on age) to defer at 35-37% federal rates, or using Nonqualified Deferred Compensation (NQDC) plans with no contribution limits but requiring the deferral election by December 31 of the prior year. A $150,000 bonus deferred through NQDC at the 37 ...