Deferred Compensation Agreement Template With Life Insurance In Utah
Category:
State:
Multi-State
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
In a non qualified deferred compensation plan using life insurance, the company owns and is the beneficiary of the policy on the key employee's life. This plan allows employee voluntary contributions only.Deferred compensation plans allow a worker or employee to earn a W2 wage, bonuses and other compensation in a certain year and receive earnings in another. Human Resources Forms: 401(a) Retirement Election Form (Employer-paid), 403(b) Salary Reduction Agreement Form, 457(b) Deferred Compensation Plan Form. An NQDC plan can be set up many ways, including with the employer funding it. But let's look at an example in which life insurance funds it.