Deferred Compensation Plan For Self Employed In Riverside
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State:
Multi-State
County:
Riverside
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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The City provides all benefited employees the opportunity to participate in a Section 457b Deferred Compensation plan. Complete the appropriate boxes below, with the amount you authorize to have deducted each pay period.Effective date: â–¡ ASAP or Paycheck dated. Sign up and manage your deferred compensation retirement account. All benefited City employees may participate in the Plan. Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations. I may withdraw vested funds from the Plan only upon severance from employment; upon reaching my normal retirement age as defined in the Plan. Your local Benefits Office is a resource for answers to questions about your benefits and for benefits publications and forms. How do I set up RMDs?