Deferred Compensation Plan Tax Treatment In Alameda
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State:
Multi-State
County:
Alameda
Control #:
US-00418BG
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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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Deferred Compensation is a program that allows you to save and invest a portion of your salary today, for the purpose of augmenting your retirement income. To start the online enrollment process for the Deferred Compensation Plan, please click here.Roth option now available for all 457 plans. The Deferred Compensation Plan is a supplemental retirement plan option in addition to your CalPERS pension plan. Question: Can the Corrective Distribution amount be rolled over to a Deferred Compensation Plan or a 401K to avoid the tax withholding?