Louisiana Deferred Comp Withdrawal In Middlesex
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State:
Multi-State
County:
Middlesex
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 withdrawals are also subject to state income tax. Once you terminate service (e.g.Questions regarding §457 maximums and refunds should be directed to Louisiana Deferred Compensation at or toll free at . A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee's income without being taxed and are only taxed upon withdrawal. Does my participation in a deferred compensation plan affect my benefits from Middlesex County Retirement System?