Deferred Compensation Form For Self Employed In Houston
Category:
State:
Multi-State
City:
Houston
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.
Free preview
Form popularity
More info
You have many of the same options to save for retirement on a taxdeferred basis as employees participating in company plans. 1. Is there a certain time that I can enroll?You can enroll in the City of Houston Deferred compensation plan at any time. It's designed to be a supplement to your pension and is an additional way to invest long-term directly from your pay. (per pay period) of my compensation as before-tax contributions to the Governmental. Establish the plan: Complete the required forms, such as IRS Form 5304SIMPLE or 5305SIMPLE. Deferred retirees must pay premiums via the benefits payment online portal.