Deferred Compensation Agreement Template With Life Insurance In Cook
Category:
State:
Multi-State
County:
Cook
Control #:
US-00417BG
Format:
Word;
Rich Text
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.
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This plan provides a benefit in the event of death of an employee. Please schedule a local office in-person appointment or call us at 1-.Any funding of deferred compensation arrangements should be accounted for separate from the deferred compensation liability. The Supreme Court Commission on Access to Justice has approved the following forms. All Illinois Courts must accept these forms. Employers can use life insurance to fund their future owed payments in deferred compensation plans and to help the employee build more wealth.