U.S. Olympians and Paralympians Win with Deferred Compensation

While we do not know exact details about the payments, we can hypothetically examine some best practice structures that benefit the athletes and the USOPC. We do know that the compensation awarded to the athletes will come in two forms: 1) a payment of $100,000 that comes at the latter of either 20 years after participation or at age 45 in four installments, and 2) a $100,000 life insurance policy naming a chosen beneficiary, per The Athleticⁱⁱ. Importantly, these benefits accumulate for each Olympic appearance. 

Let’s consider some best practices into how these benefits may be structured:

1. The payment of $100,000 is a substantial benefit to the athletes despite the 20-year deferral. According to Rotowire, the average age the entire Team USA Olympic roster is just over 28 years oldⁱⁱⁱ. Therefore, most of the Milano Cortina U.S. Olympic team will be past the age of 45 after 20 years and will be eligible to collect their payment in 2046. This means that the payer of the benefit, presumably the USOPC, can forecast how to allocate funds in order to meet their distribution commitments. 
   
   
   
   

   A “Defined Benefit” Structure The benefit guarantor could allocate an investment account to provide for a fixed payment amount at a certain time.  At a 6% discount factor, a $100,000 benefit 20 years from now can be funded with as little as $31,200 today for each Olympian participating in 2024.  In a Defined Benefit structure, the guarantor assumes the risk that the investment performance may not match the assumed discount rate, thereby requiring an additional future contribution to deliver the promised benefit.

2. Regarding the life insurance benefit American athletes will receive, it is conceivable that the policies will be controlled by an institutional entity, perhaps the USOPC, which will be responsible for the financial aspects of the policy (premium payments, etc.). Since this benefit is guaranteed, we can assume that these life insurance policies will be permanent life insurance policies as opposed to term life insurance policies. One way in which the guarantor might structure the policies is as single-pay, paid up policies whereby the athlete would receive coverage from the policy without ongoing payment obligations, and may even benefit from cash value growth of the policy. In this scenario, the only financial burden on the athlete would be a tax liability for income on the one-time premium amount. 

Go Team USA! 

While we do not know for certain how the benefits will be structured, we do recognize that compensating U.S. Olympic athletes is an investment in both people and performance. Compensation can boost morale by affirming that years of sacrifice, discipline, and national representation are truly valued—not just celebrated during medal moments. It also strengthens athletes’ financial wellbeing. For the USOPC, this support builds loyalty, stability, and a deeper talent pipeline, reinforcing a culture where excellence is sustainable rather than conditional. Given the scale of the U.S. Olympic teams, meaningful payments at the time of the Games may not be sustainable. Deferred compensation offers an avenue for athletes to be receive substantial financial compensation for performing the activity that they love. That same principle is why employers use nonqualified deferred compensation plans, to reward performance today while aligning cost and value over time. 

This news highlights how deferred compensation structures can support long-term financial outcomes not just for executives, but for any group where timing, retention, and funding matter. If you are an employer who would like to learn more about deferred compensation, we invite you to connect with us at planadmin@kbadmin.com. Our team is ready to help you evaluate your compensation, optimize your elections, and build a coordinated approach that strengthens long term financial planning while maximizing available tax benefits.