Deferred Compensation Plan To Ira In Tarrant
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State:
Multi-State
County:
Tarrant
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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While deferred comp doesn't count toward an IRA, maybe you have other nondeferred income you want to count toward an IRA. How do I set up RMDs?Tarrant County offers an optional tax-deferred retirement savings program called Deferred Compensation (457(b) plan). Please contact your legal or tax advisor for such advice. Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Submit your forms as follows: 1) Inquries and questions can be sent via email to the Plan.