Deferred Compensation Plan Tax Treatment In Miami-Dade
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State:
Multi-State
County:
Miami-Dade
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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The 457 Individual Retirement Account reduces the amount you pay for Federal Withholding taxes out of your paycheck. Participant in a Tax-Exempt Organization Eligible 457 Plan may make any number of elections or revoke any prior election under.Visit MyFloridaDeferredComp. The Florida Deferred Compensation Plan is available to help State employees bridge the savings gap. Tax Treatment: The employer gets a deduction when the award is paid to the executive, and the executive is taxed on receipt. This plan allows eligible employees to: Set aside money towards their retirement. To enroll in Miami-Dade County's 457 Deferred Compensation Plan, please download an enrollment form.