Nys Deferred Comp Early Withdrawal Penalty In Nassau

State:
Multi-State
County:
Nassau
Control #:
US-00418BG
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Word; 
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Description

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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FAQ

The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.

Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½.

A team of 17 regional Account Executives who offer local on-site educational programs to employees of participating employers. A team of HELPLINE Representatives located in Troy, New York that is available Monday through Friday 8am until 11pm and Saturday from 9am until 6pm.

With Roth 401(k)s, income taxes are not owed on the withdrawal of your contributions, but income taxes and the 10% penalty tax may apply on the withdrawal of earnings, unless an exception applies. It's important to keep taxes and penalties in mind when making an early withdrawal.

The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.

As always, you can speak with a Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760.

You can't borrow from an IRA, and early withdrawals could incur taxes and penalties.

More info

Thinking of tapping into your retirement savings early? The New York State Deferred Compensation Plan is a State-sponsored employee benefit for State employees and employees of participating employers.In an effort to encourage savings for retirement, certain penalties are charged against early withdrawals or distributions from a qualified plan. 6.14.15 Please attach your filled out New York State Deferred Compensation Plan Vendor Responsibility. After Leaving Employment.

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Nys Deferred Comp Early Withdrawal Penalty In Nassau