Deferred Compensation Agreement Template With Life Insurance In Harris
Category:
State:
Multi-State
County:
Harris
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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It's designed to be a supplement to your pension and is an additional way to invest long-term directly from your pay. The Plan also provides for the continuation of life, medical and dental benefits at retirement based on certain criteria as outlined in the Agreement.A deferred compensation plan is another name for a 457(b) retirement plan, or "457 plan" for short. Strengthen retention and attraction with nonqualified deferred compensation plans. Discover how Schwab Retirement Plan Services can support your team. Your Employer sponsors a 403(b) Salary Reduction Arrangement and a 457(b) Deferred Compensation Plan.