Deferred Compensation Plan For Small Business In Pima
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State:
Multi-State
County:
Pima
Control #:
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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Pima County offers two voluntary deferred compensation retirement plans. Submit your forms as follows: 1) Inquries and questions can be sent via email to the Plan.A nonqualified deferred compensation plan can reduce your taxable income, but there are risks to consider. How do I set up RMDs? An eligible deferred compensation plan under IRC Section 457(b) (or "section 457 plan") must meet the written plan document requirements. Deferred compensation plans allow the participant to defer income today and withdraw it at some point in the future (usually upon retirement)