TDP or Tax Deferred Payments are methods where people can request that payments be deducted from their wages. This payment method, called tax-deferred payments, or TDP, provides for a retirement savings payment plan plus a significant tax break. The amount authorized for deduction from the paycheck is not subject to income tax until the wage earner begins receiving his pension at retirement age. While the tax advantages are great, it be noted that a TDP agreement, once initiated, is binding and irrevocable.