Deferred Compensation Plan Vs 401k In Florida - Deferred Compensation Agreement - Long Form
Category:
State:
Multi-State
Control #:
US-00418BG
Format:
Word
Instant download
Description
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés.
For your convenience, the complete English version of this form is attached below the Spanish version.
Free preview
Form popularity
More info
Deferred compensation plans tend to offer better investment options than most 401(k) plans, but are at a disadvantage regarding liquidity. The Florida Deferred Compensation Plan is an excellent way to increase retirement security.Deferred compensation allows Florida employees to set part of their earnings aside for future uses, which could help boost your nest egg. It is designed primarily for employees who want greater control over their retirement plan and who want flexibility in how their benefit is paid at retirement. In this article, we'll be covering how deferred compensation plans work, the benefits for your financial plan, and whether they're better than a 401(k). 457(b) plans and 401(k) plans are very similar. Both offer you the opportunity to make tax-deferred contributions to a retirement account. Com to fill out and submit the online EZ Enrollment Form. One major difference is that currently 457 plans are designed for public sector employees, and 401(k) plans are designed for private sector employees. Complete the "ROLLOVER INTO FLORIDA PLAN FORM" and send it back to your Investment Provider.