Deferred Compensation Plan Vs 401k In Massachusetts
Category:
State:
Multi-State
Control #:
US-00418BG
Format:
Word;
Rich Text
Instant download
Description
The Deferred Compensation Agreement between an employer and employee in Massachusetts outlines the conditions under which an employee can receive post-retirement income or pre-retirement death benefits. This plan serves as a supplemental income above regular pension and insurance benefits, making it distinct from a 401(k) plan, which is primarily a tax-advantaged retirement savings account. Key features include payment terms based on retirement age, provisions for payments upon death, and a multiplier based on the National Consumer Price Index. To fill out the form, users must input the employee's details, compensation amounts, and terms of agreement. Specific use cases include retaining valuable employees, incentivizing loyalty, and addressing financial planning needs for employees nearing retirement. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants involved in drafting, reviewing, or managing employee compensation agreements in a corporate setting.
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