Ohio Deferred Comp Hardship Withdrawal 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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Withdrawals are taxed as ordinary income. You may withdraw funds from the Program only upon: 1.Ending your employment (including termination, retirement, or death). 2. Upon separation from employment, there will be no charges or penalties assessed on withdrawals from your account. Your account is tax-deferred until you withdraw money after separation from employment. In general, a 457(b) plan may permit hardship distributions for unforeseeable emergencies if specific requirements are met. As a public employee you are required to complete and file this form within 45 days of beginning employment. Please fill out the form in blue or black ink. 2. Use this form if you want to: • request a distribution for a financial hardship due to an unforeseeable emergency. Your employer may permit you to take a loan from your deferred compensation plan.