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Walmart Deferred Compensation Matching Plan (DCMP): Executive-Friendly Guide

What is Walmart’s DCMP and Why Should You Care?

The DCMP allows you to push your income into the future—beyond the limits of your 401(k)—and receive additional company matching on that deferred pay. That means:

  • Lower tax bill today.
  • More invested for tomorrow.
  • Strategic planning for retirement, college, or other major goals.

Walmart DCMP explained — what it is and how it works. 

Three Things Every Walmart Exec Needs to Know About DCMP

1. Maximize the 6% Match

  • Walmart offers a 6% match on eligible compensation above the IRS limit ($350,000 in 2025).
  • This match works like the 401(k), but ONLY on pay over the cap.
  • To fully capture both the 401(k) and DCMP match benefits, use the Walmart DCMP Match Calculator and plan deferrals carefully.
  • https://walmartdcmpmatchcalculator.com/
  • Legacy is here to help you with questions and planning surrounding DCMP deferrals.
  • Vesting: DCMP matches take 3 years to vest. Make your elections early to maximize free money—don’t leave money on the table!

2. Enrollment & Deferral Details

  • Enrollment for DCMP happens every December (covering the next February – January earnings cycle).
  • Your investment returns on deferred money are based on the funds you select, offering market-based returns.
  • Prior fixed-rate options (based on 10-year Treasury +2.7%) are now only available for pre-existing balances and require careful management.
  • Risk Note: Deferred funds are NOT secured—there is creditor risk should Walmart face insolvency.

3. Flexible Deferral & Distribution Choices

You decide how much (and from where) to defer:

  • Base Salary: Defer each pay period.
  • MIP: Defer a percentage.
  • Company Match: Separate election possible.
  • Contribution limits:
    • Sr. Directors: Can defer up to 80% of their Management Incentive Plan (MIP, i.e., annual bonus) but cannot defer base salary.
    • Officers: Can defer up to 100% of their MIP and up to 80% of their base salary, offering significantly greater tax-deferral flexibility.

For payout, you can tailor distributions by deferral type:

  • At Retirement: Lump sum or installments (1–15 years).
  • While Employed: Lump sum on a date you choose.
  • At Death: Lump sum or installments to beneficiaries.

This flexibility lets you match distributions to your needs, whether that’s tax planning, retirement income, or legacy support.

Planning Pointers for Walmart Executives
  • Coordinate 401(k) & DCMP deferrals: Take care that DCMP contributions don’t reduce your 401(k) match. Use the calculator and talk to an advisor if in doubt.
  • Start Early: Vesting takes time, so start as soon as eligible.
  • Pick Investments Wisely: Returns are tied to your fund choices.
  • Don’t Ignore the Risks: DCMP is a general obligation of Walmart, not a protected account.
  • Distribution Strategy: Lump sum vs. installments can make a difference to your tax situation down the line.
Getting Started
  • Use netbenefits.com (Fidelity) to enroll. Register as a new user if necessary.
  • Make individual elections for each compensation type and select your payout method.
  • Connect with a financial advisor for assistance and strategic planning.
The Bottom Line

Walmart’s DCMP is a powerful tool for high earners and executives—if you understand how to use it well. With careful planning, this benefit will help you build retirement wealth, lower taxes, and align payouts with your goals. Just remember: maximize your free money, think about the taxes on the distributions, and get advice tailored to your situation.

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