Deferred Compensation Plan To Ira In Michigan
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Multi-State
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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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This form includes detailed instructions on how to initiate a plan-to-plan transfer. Do not submit completed payout forms prior to actual termination date with State of Michigan.This Order applies to benefits under the 457 Plan known as the State of Michigan. The Deferred Compensation Plan is a voluntary, supplemental retirement savings program established pursuant to Internal Revenue Code Section 457(b). Under Michigan law, deferred compensation is taxable. The City offers two deferred compensation plans. These plans are known as 457 plans; participation is voluntary. How do I sign up for the Macomb County Deferred Compensation Plan and Trust (457 plan)? Simply fill out the enrollment form and send it to Vanguard.