To determine the potential importance of several unexplored covariates of everyday memory compensation, the authors examined relations between responses on the Memory Compensation Questionnaire (a self-report measure of everyday memory compensation) and cognitive reserve (education and verbal IQ), subjective memory, and life stress in 66 older adults (mean age = 70.55 years). Key results indicated that compensation occurred in people (a) whose IQ level was greater than their education level (representing cognitive reserve "discordance") but not in people whose IQ was commensurate with their education (representing cognitive reserve "concordance"); (b) who had greater perceived memory errors; and (c) who experienced heightened stress. Further, high-stress older adults compensated whether perceived memory errors were low or high, but low-stress older adults compensated only if they perceived high memory errors. Bootstrapped confidence intervals around model betas provided further support for estimate reliability. These results suggest boundary conditions for the concept of cognitive reserve, and highlight the importance of subjective memory and life stress for defining contexts in which compensation may occur.