Deferred Compensation Plan For Small Business In Los Angeles
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State:
Multi-State
County:
Los Angeles
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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The City of Los Angeles Deferred Compensation Plan is a voluntary tax-advantaged governmental 457(b) plan that allows you to save a portion of your salary now. Benefits of a SEP-IRA.The City of Los Angeles Deferred Compensation Plan is a supplementary retirement savings plan. It is available to all full-time employees. Owners of small businesses normally do not use a formal deferred compensation plan or formal deferral of "declared" salary.