Deferred Compensation Plan For Highly Compensated Employees In San Antonio
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State:
Multi-State
City:
San Antonio
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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457 plans allow you to use a portion of your funds for loans, as well as for hardship withdrawals due to certain unforeseeable emergencies. Before you complete this form, please read the accompanying literature in the 457.Most highly compensated employees take advantage of catch-up contributions in their qualified retirement plans, but things are about to change. Deferred compensation plans can deliver, especially for highly compensated employees. Monitor the group of eligible employees. A 457(b) plan is a tax-deferred retirement savings plan.