Deferred Compensation Plan To Ira In San Antonio
Category:
State:
Multi-State
City:
San Antonio
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
Before you complete this form, please read the accompanying literature in the 457. 457 plans allow you to use a portion of your funds for loans, as well as for hardship withdrawals due to certain unforeseeable emergencies.Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations. Participating in an NQDC plan can allow high earners to accrue additional pre-tax savings and tax-deferred growth. A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee's income without being taxed and are only taxed upon withdrawal. A nonqualified deferred compensation plan can reduce your taxable income, but there are risks to consider.