If you’ve recently been promoted from Level 66 to Level 67 at Microsoft – first off, congratulations! This is a huge milestone in your career, and it comes with more than just a title change.
It also unlocks access to one of the most powerful wealth-building tools available to Microsoft executives: the Deferred Compensation Plan (DCP).
Download our free Microsoft Deferred Compensation Guide 2025 Edition.
Designed for Microsoft Level 67+ Professionals
Why DCP Is a Big Deal
Think of DCP as a 401(k) on steroids.
Unlike a 401(k), where contributions are capped annually, DCP allows eligible employees to defer:
- Up to 75% of salary
- Up to 100% of bonus
This means you can set aside a significant portion of your income, reduce your tax bill today, and allow those dollars to grow tax-deferred.
For many Microsoft executives, this can translate into $50,000 to $100,000 in tax reduction in a single year. Over time, that impact compounds making DCP a true game changer.
Timing Matters: Promotions and Deferral Elections
One nuance to keep in mind: when you elect your deferrals.
- Promotions at Microsoft often take place in late August.
- DCP elections for the following year’s salary typically occur in November.
That means soon after your promotion, you’ll want to think carefully about your election strategy. Decisions you make in November can have a major impact on your income, taxes, and cash flow in the years ahead.
More Than Just Tax Savings
While the tax savings can be substantial, the real value of DCP comes from how it fits into your broader financial plan. Questions to consider include:
- When should you defer compensation?
- How much should you defer each year?
- How will you structure payouts to balance cash flow and tax efficiency?
This is where thoughtful planning and working with an advisor who understands Microsoft’s benefits can make all the difference.
Resources for Microsoft Executives
At Avier Advisors, we’ve spent 25 years helping highly compensated professionals make the most of their Microsoft benefits.
To help you get started, we’ve created a few resources:
- Download our Microsoft Deferred Compensation Guide
- Explore our YouTube playlists dedicated to Microsoft Level 67+ employees
- Book a free 30-minute intro call with one of our advisors
Final Thoughts
Your promotion to Level 67 is an exciting career milestone and an important financial one. By taking advantage of the Microsoft Deferred Compensation Plan, you can set yourself up for meaningful tax savings, long-term growth, and greater control over your wealth.
Don’t miss this opportunity to put your benefits to work for you.