J.B. Hunt Compensation Overview: 401(k), Deferred Compensation Plan, and Equity Comp
- Mark Chisenhall, CFA
- Jul 24
- 6 min read

J.B. Hunt offers a strong compensation package that includes Restricted Stock and Performance Shares, option to defer income taxes via the J.B. Hunt Deferred Compensation Plan (DCP) and a 401(k) Plan with a 3% match and a Mega Backdoor Roth option.
The drawbacks are mostly in relation to J.B. Hunt matching contributions in the 401(k) and DCP. J.B. Hunt does not match on Deferred Compensation contributions, nor does it offer a restoration plan for any 401(k) matching dollars lost as a result of contributing to the DCP. While there is a 401(k) match, the amount of match and lengthy vesting period make it less employee friendly. But there is a lot to appreciate, and certainly plenty of opportunity for Financial Planning!
Let's quickly review the J.B. Hunt 401(k) Plan, Deferred Compensation Plan and Equity Compensation along with some common financial planning opportunities for each!
J.B. Hunt 401(K) Plan: Company Match, Backdoor Roth and NUA Potential
The J.B. Hunt 401(k) Plan includes both Traditional and Roth contributions, an employer match and most likely makes available the Mega Backdoor Roth strategy via after tax-contributions and in-plan Roth conversions.
Traditional and Roth 401(k): Employees have the option to contribute Pre-Tax and After-Tax income into the Traditional and Roth accounts, respectively. Since after-tax contributions and in-plan Roth conversions are available, employees that wish to contribute more than the IRS limit ($23,500 in 2025) can save up to $70,000 in 2025 ($77,750 over age 50). This amount includes all employee and employer contributions.
J.B. Hunt Match: J.B. Hunt matches employee contributions to the 401(k) up to 3% of eligible compensation. In order to receive the full match, employees must contribute 6% of eligible pay to receive the 3% since J.B. Hunt matches 50%, not 100%. Additionally, employees must wait 6 years for the employer match to fully vest
No Supplemental or Restoration 401(k): If you forfeit a portion of your 401(k) match as a result of contributing the J.B. Hunt DCP, J.B. Hunt does not offer a Restoration Plan to compensate you for the loss. While these Restoration Plans are common, none of the large Northwest Arkansas companies offer them - though two do offer matches on Deferred Compensation contributions.
Planning Opportunities for the J.B. Hunt 401(k)
Prioritize 401(k) over the DCP: Since the J.B. Hunt 401(k) is qualified, participants should max out the 401(k) before contributing to the DCP. If you are considering contributing to the DCP, you'll weigh any tax savings from the DCP against any lost 401(k) match since there is no restoration savings plan at J.B. Hunt.
Mega Backdoor Roth Strategy: For employees that wish to contribute more than the IRS limit ($23,500 in 2025) to their retirement, J.B. Hunt allows you to make after-tax contributions to a Traditional 401(k) and convert those to the Roth 401(k). This allows you to save up to $70,000 across the J.B. Hunt 401(k) Plan. The amount includes employee and employer contributions.
Net Unrealized Appreciation (NUA) Strategy: Based on SEC filings, the J.B. Hunt Plan holds a significant amount of J.B. Hunt shares. The NUA strategy allows participants to move Company Stock to a brokerage account (as opposed to an IRA) and pay the long-term capital gains on the growth as opposed to the ordinary income tax rate.
J.B. Hunt Deferred Compensation (DCP): Simple, but Effective
The J.B. Hunt DCP allows eligible employees to defer taxable income to later date when ideally the participant is in a lower tax bracket. While the J.B. Hunt lacks a Company Match, Restoration Plan, or Flexibility around distributions, it can be a powerful tax savings tool for J.B. Hunt Executives.
Contributions: Eligible J.B. Hunt employees (typically VP+) are allowed to contribute up to 85% of Bonus and 50% of Salary.
Match: While J.B. Hunt offers an employer match of the 401(k) Plan, it does not match contributions to the J.B. Hunt DCP.
Distributions: Participants opt to receive distributions as either a Lump Sum or in quarterly installments. The installment option often offers the highest tax savings as you can manage your income tax bracket over multiple years. Distributions are triggered when participants separate from J.B. Hunt or a specific date while still working for J.B. Hunt. This creates some complexity around tax planning for participants that do not plan or know if they'll retire from J.B. Hunt.
Planning Opportunities for the J.B. Hunt DCP
Tax Savings: As a high earner, you are likely in the highest tax bracket of your lifetime. Deferring taxable income today - that may be taxed at 37% - to a future date such as in retirement - when it may be taxed in the 10-20% range - can significantly lower your lifetime tax bill.
Lost 401(k) Match: Since contributing to the DCP reduces your income eligible for the J.B. Hunt 401(k) match, it's important to compare the expected tax savings vs. the forfeited 401(k) match. Some companies offer Restoration Plans to make employees whole, but J.B. Hunt currently does not.
J.B. Hunt DCP vs. Life Insurance: It's common for J.B. Hunt executives to get pitched life insurance products as a tax savings tool. In many cases, the J.B. Hunt DCP is a superior option for tax savings because the life insurance products must be funded with after tax income while the J.B. Hunt DCP is funded with pre-tax income - which is more beneficial if you are currently in a high tax bracket.
J.B. Hunt Equity Compensation Plan: RSUs and PSUs
The J.B. Hunt Equity Compensation structure is simple and consists of Restricted Stock Units and Performance Share Units.
Restricted Stock Units: Grants are typically awarded once per year and vest over several years (4 - 10 Years per SEC documents, but the average weight is about 3 years.) You pay ordinary income taxes on this income when the shares vest (regardless of whether you hold or sell them), not when they are awarded.
Performance Share Units: PSUs are awarded to high level Executives, and the amount varies based on a set of performance metrics. At most companies, PSUs vest on a cliff schedule - meaning 100% vests at the same time. Per SEC documents, the weighted average vesting period for PSUs is 2 - 3 years. Just like RSUs, you pay income taxes when the shares vest regardless of whether you hold or sell them.
Planning Opportunities for Equity Compensation
There are not many decisions to make on the J.B. Hunt equity compensation - the amount and vesting date are not in your control.
Cash Flow: Using cash flow from equity to allow you to contribute more salary or Bonus to tax-deferred accounts such as the 401(k), HSA and DCP can boost your tax-advantaged savings.
Diversify: If you do not want to have a concentrated stock position in J.B. Hunt, best practice is to liquidate and diversify soon after the shares vest.
Tax Withholding: The default withholding on equity compensation is 22% at most companies. If that is significantly less than your marginal income tax rate you are likely looking at a large tax bill or even a withholding penalty. You have the option to adjust the withholding rate, pay quarterly tax payments, or just plan for a significant cash outflow when you file your tax return.
The J.B. Hunt compensation package is fairly straightforward which is mostly a positive. The Deferred Compensation and 401(k) Plans lacks some of the flexibility (e.g. Timing of DCP Distributions) and functionality (e.g. Backdoor Roth, Restoration Plan) of Plans at other companies, but it's a competitive plan in the Northwest Arkansas area and I presume competitive in the trucking and logistics sectors.
Taurus Financial Planning is a Flat-Fee financial planning firm based in Bentonville, AR. The firm offers comprehensive financial planning, tax planning and investment guidance to corporate executives across the country.
Taurus Financial Planning is a Registered Investment Advisor with the State of Arkansas. This information is provided as a guide to assist you in your financial planning. The specific examples are provided for illustration purposes only and are not representative of specific investments or guarantees of future returns. Please consult with a professional for specific questions regarding your particular situation. If there is any error or inconsistency between this document and the official company plan documents, your company plan documents will govern.
This publication is for informational purposes only and is not intended as tax, accounting or legal advice or as an offer or solicitation of an offer to buy or sell or as an endorsement of any company security fund or other securities or non securities offering. This publication should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made by the Author, in the future, will be profitable or equal the performance noted in this publication.