Deferred Compensation Plan For Executives In Utah
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Multi-State
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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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Most Utah employees, including those of the State of Utah, are eligible. Check with your employer log in to myURS.This plan allows eligible employees to: Set aside money towards their retirement. Make Roth contributions that can grow tax-free. Employees agree with their employer to defer a portion of their salary or bonuses. NACo's Deferred Compensation Program has helped more than 1.5 million county employees and retirees save for and live comfortably in retirement. Use this form to enroll in a Utah Retirement Systems (URS) 401(k) or 457(b) Plan. An executive deferred compensation plan allows employers to put off money for retirement. Here's how it works.