Skip to Content

If you’re eligible for Walmart’s Deferred Compensation Matching Plan (DCMP), you have another financial decision to make.

And it can feel more complicated than the Walmart 401(k).

How much should you defer? How does the DCMP match work? What payout option should you choose? How should you invest the money?

Those questions can lead some Walmart executives to put off learning about deferred compensation altogether.

That can be a missed opportunity.

The Walmart Deferred Compensation Matching Plan can be a powerful planning tool when it fits your situation. The key is understanding how the DCMP works alongside your executive compensation package and other Walmart employee benefits and your larger financial plan.

How Does the Walmart Deferred Compensation Match Work?

The Walmart DCMP offers eligible executives another opportunity to save on a pre-tax basis.

It can also provide an additional Walmart match.

According to Walmart's DCMP guide, Walmart matches eligible DCMP contributions dollar for dollar, up to 6% of eligible compensation above the applicable IRS compensation limit.

That makes the match an important part of the decision.

Some executives focus first on maxing out their Walmart 401(k). But you don't have to max out your 401(k) before participating in the DCMP if you're otherwise eligible.

That distinction matters.

Focusing exclusively on the 401(k) could cause an eligible executive to overlook the potential DCMP match.

At the same time, DCMP contributions reduce your 401(k)-eligible wages. Your Walmart 401(k) and deferred compensation decisions should therefore be evaluated together.

Use the Walmart DCMP Match Calculator

The Walmart DCMP Match Calculator can help you understand how the two benefits interact.

The calculator allows you to model different Walmart 401(k) and DCMP elections. You can then see how different deferral amounts may affect the company match.

It's a useful starting point.

The next question is whether those numbers make sense for your personal financial plan.

Consider Your Other Walmart Benefits and Assets

Deferred compensation affects your current cash flow.

If you defer more income, less may be available in your paycheck today. That's why it can be useful to look beyond your salary when evaluating a DCMP strategy.

Some Walmart executives may also have assets from Walmart restricted stock units (RSUs) or shares accumulated through Walmart's Associate Stock Purchase Plan (ASPP).

Those assets can be part of the larger planning conversation.

For example, an associate might evaluate whether existing assets could help support current cash-flow needs while more compensation is deferred into the DCMP.

That doesn't mean selling Walmart stock or using vested RSUs is right for everyone.

It means your Walmart deferred compensation strategy shouldn't be evaluated in isolation.

Your 401(k), vested restricted stock units, Associate Stock Purchase Plan shares, other investments, cash flow, taxes, and retirement goals may all affect the decision.

Walmart Deferred Compensation and Early Retirement

The DCMP may also deserve extra attention if you're considering retiring early.

Walmart's plan guide states that DCMP distributions don't carry an age-based early-distribution penalty. That's an important difference from the 401(k), where distributions before age 59½ may be subject to a 10% penalty.

That difference can create additional planning possibilities for someone expecting to leave Walmart before age 59½.

But the payout strategy matters.

The Walmart DCMP offers different distribution options, including lump-sum payments and annual installments. Those elections can affect how and when you receive your deferred compensation after leaving Walmart.

There isn't one payout strategy that's right for every associate. It is important to note as well that the funds are not available till after you leave employment with Walmart.

Your expected retirement date, career plans, cash-flow needs, taxes, investments, and other assets can all be relevant.

That's why the payout decision deserves attention well before retirement.

Don't Wait Until DCMP Enrollment to Start Planning

The biggest DCMP mistake may be simply not learning about it.

The plan requires more decisions than many associates are accustomed to making with their Walmart 401(k). But those additional decisions are also why planning ahead matters.

Start by understanding:

The plan provider can help you understand the DCMP's features, rules, and available elections.

A financial planner can help you answer a different question:

Does Walmart deferred compensation make sense as part of my overall financial plan?

That's a conversation worth having before you're facing an enrollment deadline.

Important Considerations

Deferred compensation and other investments involve risk. Investment options can also have different liquidity characteristics. Understand the investment and liquidity risks associated with your available options before making an election.

This article is intended for educational purposes and should not be considered individualized financial, investment, or tax advice. Plan provisions, eligibility requirements, contribution limits, tax rules, and other details can change. Consult Walmart's current plan documents and appropriate financial and tax professionals before making an election.

If your inbox has been filling up with emails about Walmart's Associate Stock Purchase Plan (ASPP), you may be wondering whether there's something you need to do before the program transitions from Computershare to Merrill.

For most associates, the answer is simple: probably not.

Unless you were already planning to sell shares or make changes to your payroll contributions, your account, existing shares, and current contribution elections will transfer automatically. The biggest thing to know is that beginning July 31, the ASPP will enter a temporary blackout period while the transition takes place. During that time, you won't be able to access your account or make certain changes until the transition is complete.

What's Changing?

From July 31 through August 20, Walmart's ASPP will transition from Computershare to Merrill. Beginning on or about August 21, associates will access their accounts through Merrill's Benefits OnLine website and mobile app.

The move is intended to create a more streamlined experience by bringing the ASPP and Walmart's 401(k) under the same provider. According to Walmart's transition materials, Merrill is expected to eliminate online trading commissions for Walmart shares in the ASPP. Other fees or charges may still apply. Review Merrill's current fee schedule for details.

Based on Walmart's transition materials, the ASPP's core features including payroll contributions, contribution limits, and the company match are expected to remain unchanged.

Do You Need to Take Action?

For most associates, no action is required.

However, if you were already planning to make changes to your account before the transition, you'll want to act before the blackout period begins.

Specifically, July 30 is the last day to:

Beginning July 31, your account will be temporarily unavailable while it transfers to Merrill. During the blackout period, you won't be able to buy or sell shares, transfer shares, or make changes to your payroll contribution elections. Access to your account will return once the transition is complete on or about August 21.

Associates with unique circumstances such as a P.O. Box address or certain joint account arrangements may have additional requirements and should review Walmart's transition communications carefully.

What to Expect After the Transition

Once your account is active at Merrill, you'll manage your ASPP through the Benefits OnLine website or mobile app. You'll also be able to update payroll contributions, manage your account, and sell shares through the new platform once the blackout period has ended

A Good Reminder to Check on Your Financial Plan

While this transition is largely administrative, it can also serve as a helpful reminder to check in on your overall financial picture.

Changes like this often prompt us to log in to our accounts, review our benefits, and make sure everything is working as expected. As you're getting familiar with the new platform, consider taking a few extra minutes to review your broader financial plan. Are your savings still aligned with your goals? Have your financial priorities changed over the past year? Are your beneficiary designations and account information up to date?

Using moments like this to pause, review, and stay organized can help you feel more confident about your financial future.

If you have questions about how your employee benefits fit into your overall financial plan, consider speaking with a financial professional to evaluate your options based on your individual circumstances and goals.

When most people think about gifting strategies, they picture money moving from parents to children or grandchildren. But in some situations, families may benefit from thinking about wealth transfers in the opposite direction. 

It’s called “upstream gifting,” and while it’s certainly not appropriate for every family, it’s one example of how in certain circumstances, coordinated estate and tax planning strategies may help improve tax efficiency for some families. These are often the kinds of opportunities families don’t realize exist until someone takes a closer look. 

What Is Upstream Gifting?

At a high level, upstream gifting involves transferring appreciated assets from an adult child to a parent or older family member. If structured appropriately and aligned with the family’s broader estate plan, the assets may eventually pass back to the next generation through inheritance. 

Why would someone do this? 

Under current federal tax law, certain inherited assets may receive a step-up in cost basis at death, although the availability and impact of this treatment depends on individual circumstances and future tax law. In some cases, inherited assets may receive a basis adjustment to fair market value at the owner’s death under current law, which could reduce future capital gains exposure. Depending on the family’s circumstances, the strategy may create tax efficiencies in certain situations.

A Real-Life Example

We recently worked with a client who had accumulated a substantial position in Walmart stock over several decades. Much of the stock had been held since the 1990s, which meant there was a very large, unrealized capital gain embedded in the account. 

Selling the shares outright would have created a significant tax bill. 

During planning conversations, we also reviewed the client’s mother’s financial picture. She was financially secure, had her own brokerage assets, and was in a much lower tax bracket. The client was also an only child, which simplified some of the estate planning considerations that can arise when multiple heirs are involved. 

After discussions around the family’s estate plan, overall financial goals, and potential risks, the client transferred shares to their mother. 

Several things happened as a result: 

Depending on future tax law and the family’s circumstances, a basis adjustment could reduce future capital gains exposure. 

Of course, strategies like this require careful coordination and are highly dependent on family circumstances, tax laws, and estate planning considerations. But it illustrates an important point: Comprehensive planning discussions can sometimes uncover strategies families may not have previously considered. 

The Little Things Matter 

One thing we often tell clients is this: 

If they didn’t have us tomorrow, they would probably still be okay. Their retirement goals may still be achievable. Their financial foundation may already be strong. 

But our role is to continually look for ways to make things a little better. 

Sometimes that means identifying investment opportunities. Sometimes it means improving efficiency. And sometimes it means uncovering planning strategies most people have never heard of. 

Not every idea will apply to every family. In fact, upstream gifting can create additional considerations involving: 

That’s why these conversations should always involve coordination with estate attorneys, tax professionals, and financial advisors before implementing anything.

Planning Isn’t Just About Big Decisions 

Many people think financial planning is only about major milestones like retirement, selling a business, or creating an estate plan. 

But in practice, meaningful value is often created through a series of smaller planning decisions made over time, particularly when tax, investment, and estate considerations are evaluated together. 

Sometimes those conversations lead to strategies families may not have previously considered, including techniques designed to improve tax efficiency or align assets more intentionally with long-term family goals. 

Upstream gifting is one example. Under current tax law, certain inherited assets may receive a step-up in cost basis at death, which in some situations could reduce future capital gains exposure for heirs. However, strategies like this are highly dependent on individual circumstances and may not be appropriate for every family. 

These arrangements can involve significant legal, tax, and family-governance considerations, including: 

That’s why planning strategies involving gifting or estate transfers should always be evaluated in coordination with qualified legal, tax, and financial professionals before implementation. 

Our role is not to guarantee outcomes or eliminate uncertainty. Rather, it is to help clients evaluate opportunities, identify tradeoffs, and make informed decisions within the context of their broader financial plan. 

The goal of planning is rarely perfection. More often, it’s about making thoughtful adjustments over time that may improve efficiency, flexibility, and long-term alignment with a family’s objectives. 

Sometimes the most valuable question in the planning process is simply: 

“What might we be missing?” Schedule a consultation with us today.  

Disclosure: This article is provided for informational and educational purposes only and should not be construed as individualized investment, legal, or tax advice. The examples discussed are simplified and are not intended to represent the experience of all clients or predict future outcomes. Tax and estate planning strategies involve risks and may not be appropriate for every individual or family. Outcomes depend on personal circumstances, applicable law, and future tax rules, which may change over time. Individuals should consult qualified tax, legal, and financial professionals before implementing any strategy discussed.