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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.

Did you know Northwest Arkansas has the 22nd fastest population growth rate in America?¹

Bentonville is home to Walmart’s headquarters, and thanks to the corporation’s continued influence on housing demand, this area of NWA is an especially attractive market for real estate investors. Aside from Walmart, other tech startups and large corporations operate in the area, further driving population growth and demand.

For executives, particularly those looking to divest some appreciated stock or concentrated equity positions, investing in NWA real estate may be an appealing option. Not only does it enable you to invest in a tangible piece of property, but it also creates an opportunity to benefit from the region’s continued growth.

Let’s take a look at what’s going on in NWA’s real estate market for 2025 and beyond.

2025 Housing Market Trends

Like most other markets in the country, NWA experienced a Covid-era boom in housing demand, which led to a lack of inventory and diminishing days on market. In 2024, Benton County’s average active listings were down 7.8% from 2019. In the first half of 2025, however, it looks like the market is finally course-correcting, with a 16.1% year-over-year increase in average listings per month.²

This change of pace indicates that more sellers are ready to enter and participate in the market. With more inventory, plus longer average days on market (upwards of 70 days on average), buyers are starting to regain the upper hand.² As an investor, this may give you more negotiating power in purchasing a property with favorable terms.

Drew Taylor of Taylor Team Homes has observed this shift firsthand: “We have seen an ability to negotiate more with the right, motivated sellers. The price you paid for a property is forever. The interest rate is not. Many investors now are able to negotiate on the price more and plan for a refinance later to improve their cash flow and returns.”

Similarly, home values aren’t spiking like they did between 2020–2022, but they continue to rise at a healthy, sustainable pace. The price-per-square-foot is up 7.7% year-over-year—indicating a gradual appreciation in property value, as opposed to the rapid (yet unsustainable) growth we saw just a few years ago.²

Predictions for the remainder of 2025 suggest that modest year-over-year growth will continue. This assumption is supported by the area’s relatively strong job market, growing population trends, and ongoing demand for rentals.

Potential Barriers to Entry

Those interested in purchasing property as an investment should consider the potential challenges—especially when getting started.

Lending requirements tend to be stricter for investment properties than primary residences. Expect to put down 20% or more and maintain a high credit score. Mortgage rates are typically higher for investment properties as well, since they’re considered riskier loans.

According to Taylor, investors face several key obstacles: “Challenges include structuring the financing, finding tenants, managing the property, and coordinating improvements/repairs.”

Once you have one property up and running, however, acquiring the funding for future properties may be easier. You may be able to pull equity from the first property to use as a down payment on the next, for example.

You could also be up against larger corporations and developers, which tend to scoop up apartment complexes or plots of land. Even small-scale “flippers” can make the housing market more competitive for investors and homeowners alike.

Getting Started: Define Your Investment Strategy

Before diving into the market, it’s crucial to establish clear investment criteria. Taylor recommends that “investors often clarify a ‘buy box’ when they start investing. ‘Buy box’ means a set of criteria to make searching for investment easier. My buy box is multi-family property that are duplexes, triplexes, or fourplexes in Class C and Class B neighborhoods. Other investors may want single family homes within walking distance of an elementary school. Either way, that clarity on a ‘buy box’ makes it easier for the investor to know if something is a potential fit.”

The Case for Professional Property Management

One often-overlooked aspect of real estate investing is property management. Taylor emphasizes the importance of staying current with market trends: “Many investors choose to hire a property management company to ensure that their rents rise alongside the market rents. Market rents have risen quickly, yet many of the self-managing property owners have not been aware of these changes and have lost out on returns. At Cedar Oaks Management, we are able to help take care of the hassle of the management side and help the rents stay with the market, reducing the unknowns of buying real estate.”

Interested in Real Estate Investing?

If you’ve already built substantial wealth and are looking to diversify your portfolio, real estate investing may be worth considering. Before researching properties, consider what sort of property owner you’re interested in being. Unlike other intangible assets, a property requires maintenance and recurring costs to keep its value growing.

To talk more about the ins and outs of investing in Northwest Arkansas’ real estate market, feel free to reach out to our team today.

Disclaimer: This content is for educational purposes only and should not be considered personalized investment advice. Individual circumstances vary, and executives should consult with qualified financial and tax professionals before making investment decisions.

Sources:

  1. https://talkbusiness.net/2025/03/census-northwest-arkansas-benton-county-remain-fastest-growing-in-state/
  2. https://www.nwalook.com/mid-year-review-of-northwest-arkansas-real-estate/

This blog was originally posted to Pathway by Willow.

While portfolio growth is a good indicator that your investment strategy is working, having highly appreciated stock can put you between a rock and a hard place—either sell and take a big tax hit or hold indefinitely and risk exposing your portfolio to additional volatility.

Fortunately, there are a few strategic ways to manage appreciated stock that don’t involve paying more tax than necessary. Whether your gains come from long-held company shares, a concentrated position, or just successful stock selection, below are some appreciated stock strategies to consider.

The Challenge With Selling Appreciated Stock

When you sell appreciated stock within a taxable account, you likely trigger capital gains tax. This taxes the difference between what you paid for the stock (your basis) and its fair market value (FMV) when you sell. Depending on how long the stock was held before being sold, your capital gains tax could be as high as your ordinary income tax rate. For long-term capital gains (meaning the stock was held for at least a year), the tax rate tends to be lower, usually up to 20%, but as low as 0% depending on your other taxable income.

And for those in higher income brackets or experiencing a liquidity event (such as selling a business or exercising stock options), that tax bill can be even steeper. That’s why it’s important to have a plan in place before you sell.

Strategy #1: Donate to a Donor-Advised Fund (DAF)

As we explored in our previous article, a donor-advised fund (DAF) can be a powerful way to reduce your tax liability (particularly when it comes to appreciated assets) and support causes you care about.

Rather than sell your shares outright, pay capital gains tax, and donate what remains of the proceeds, a DAF enables you to make charitable contributions out of your appreciated stock—without triggering a taxable event. Not only can you potentially receive a charitable deduction for the full FMV of the stock, but you may be able to mitigate some of that capital gains tax liability.

Strategy #2: Gifting to Family

If you have older parents or young adult children, you might consider gifting appreciated stock to those family members in lower tax brackets. This strategy is most effective when your loved ones have a lower taxable income and aren’t subject to the same capital gains tax rate as you are. They will inherit your cost basis, but should they choose to sell the stock right away, their total tax liability should be lower (since they’re subject to less capital gains tax than you).

If you do consider this avenue, just be mindful of annual and lifetime gift tax limits. In 2025, you can give up to $19,000 per person without triggering gift reporting requirements.

Strategy #3: Strategic Selling

If you prefer to sell your shares outright, consider waiting to sell until you’re experiencing a lower-than-usual income year. Or, space the sale of multiple appreciated assets across different tax years. You can also pair it with tax-loss harvesting in other parts of your portfolio to offset gains.

Preserving the Value of Your Appreciated Stocks

To see what works best for your unique situation, explore your options with a financial advisor who can help you evaluate what fits your broader goals. If you’re curious about using appreciated stock to fund a donor-advised fund or want help building a tax-savvy giving strategy, we’re here to help.

Disclaimer: This content is for educational purposes only and should not be considered personalized investment advice. Individual circumstances vary, and executives should consult with qualified financial and tax professionals before making investment decisions.*