Deferred Compensation Examples In Dallas
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State:
Multi-State
County:
Dallas
Control #:
US-00417BG
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Word;
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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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You pay no taxes on any earnings until you withdraw them from your account, enabling you to keep more of your money working for you now. Portability. Dallas County offers a Deferred Compensation Program, Nationwide Retirement Solutions, a 457 plan.Deferred compensation plans have been developed to provide employers with a vehicle to set aside the addition- al funds for their employees. Sign up and manage your deferred compensation retirement account. TI established a new deferred compensation plan (the "New Plan") in order (i) to provide a select group of management or highly compensated employees. Deferred compensation allows employees to defer payment of an agreed-upon portion of their earned income to a future date, usually retirement.