Deferred Compensation Plan Tax Treatment In Hillsborough
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State:
Multi-State
County:
Hillsborough
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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In the following pages, you'll learn how your deferred compensation plan works and why you should start investing today. This procedure provides guidelines regarding the administration of tax sheltered account (TSA) programs offered to all College employees.Deferred Compensation Plan Lawful Under State Wage and Hour Law Despite Forfeiture Provision. Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Contribution Form and submit it online, or call the Bureau of Deferred Compensation at.