Deferred Compensation Plan Vs 401k In Bronx
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State:
Multi-State
County:
Bronx
Control #:
US-00418BG
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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 will need your Social Security Number and PIN to enroll in the Plan online. DCP is comprised of two programs: a 457 Plan and a 401(k) Plan, both of which offer pre-tax and Roth (after-tax) options.The DCP offers loans from both the 457 and 401(k) plans (but not Roth options), allowing participants to access funds before retirement. I'm a reasonably well-informed investor and it just seems to me that the Deferred Compensation Plan is an unimpressive investment vehicle. Deferred compensation plans tend to offer better investment options than most 401(k) plans, but are at a disadvantage regarding liquidity. A voluntary retirement savings plan that provides quality investment options, investment educational programs and related services. NYSLRS retirement plans are defined benefit plans. Your plan provides benefits such as a lifetime pension, COLA, disability and death benefits. Financial planning services for the New York City Deferred Compensation Plan are offered through. ICMA-RC, a federally registered Investment Adviser.