Deferred Compensation Plan Withdrawal In Pennsylvania
Category:
State:
Multi-State
Control #:
US-00418BG
Format:
Word;
Rich Text
Instant download
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.
Free preview
Form popularity
More info
Request a Withdrawal. The Pennsylvania State Employees' Retirement System's Deferred Compensation Program is a governmental.Q: How do I enroll in the 457(b) Plan? The plan is intended as a nonqualified, deferred compensation plan to provide supplemental retirement savings. As with other retirement plans, there are restrictions on withdrawals from a DCP. Therefore, participation should be considered a long-term investment program.